Credit Card Forgiveness Act
- While no Credit Card Forgiveness Act exists, the Credit Card Reform Act regulates credit card issuer practices, to give consumers protection no matter how much they owe.
- No back-dated rate increases are allowed, nor are increases in the annual percentage rate (APR) as a penalty unless due to contract violations by the consumer. No late payment fees are allowed if the payment is postmarked or sent electronically before the due date. No changes in the terms of a credit card are allowed before the renewal date. Changes are only allowed once the lender has published the changes in terms.
- An issuer must verify at the time the card is issued that the consumer will be able to make the scheduled payments, and all new credit offer terms must be stated clearly.
- The consumer has the right to refuse changes to their credit card agreement, and can repay all existing balances on a terminated or expired credit card account under the original terms of the account within 5 years.
- Consumer reporting agencies can't provide an unauthorized consumer report for any consumer under 21.
