Credit Card Regulatory Information
Credit cards are regulated by several laws that directly affect consumers and their creditors. These laws govern a wide range of issues, from how terms are conveyed to when card issuers can raise interest rates.
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Discriminatory Practices
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Credit card issuers cannot discriminate against borrowers based on race, religion, sex, age, national origin, color, marital status or because the borrower receives public assistance. (Equal Credit Opportunity Act)
Credit Reporting Rights
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All consumers are entitled to a yearly free copy of their credit report from all three of the consumer reporting agencies: TransUnion, Equifax and Experian. Further, the consumer has a right to demand erroneous information be removed or the credit reporting agency can be sued in civil court. (Fair Credit Reporting Act)
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Collections Communications
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Card issuers or collections companies pursuing debt are limited in how they can interact with consumers. They cannot make threatening, harassing or false statements, and they must comply with a consumer's demand for them to stop contacting them. (Fair Debt Collections Practices Act)
Rate Increases
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Credit cards that are not issued under variable rates or with temporary promotional terms cannot have their interest rates increased unless the card holder is late on a payment for at least 60 days and the card issuer provides notice of that increase in writing at least 45 days prior. (CARD Act)
Debt Collections Limitations
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Each state, as well as the District of Columbia, has laws governing how long a credit card company has to file a lawsuit on an unpaid debt. These laws require that the card issuer file this lawsuit within that time period (usually between two and 10 years) or they lose their right to collect on the debt.
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