NY Passes Law Banning Universal Defaults on Credit Cards

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000562-ny-passes-law-banning-universal-defaults-/

Thanks to a bill passed by the New York state Senate, credit card companies are disallowed from imposing ?universal default? on New York-are cardholders.

Universal default allows credit card companies to increase consumers? interest rates as a consequence of late or delinquent payments. Sponsors of the bill said it is unfair to penalize consumers with higher card rates for activities that do not have to do with their credit card payments.

“For too many unsuspecting consumers, the fine print of credit card agreements mask hidden fees and late fees for a variety of reasons unknown to the card holder,” said Assemblyman Peter Rivera, a Democrat from the Bronx. “The practice of ‘universal default’ is deceptive and unfair.”

NY Passes Law Banning Universal Defaults on Credit Cards

Unknown Author

Featured Resources

Webinars

RA Compliance Corner: Managing the Mental Strain of Compliance

About