Privacy and Protection for Young Consumers

• The Credit Card Reform Act (CCRA) of 2009 will change the current Fair Credit Reporting Act (FCRA). The CCRA will not permit a consumer reporting agency to furnish an unauthorized consumer report for any consumer under 21. Consumers 18 or over can elect to have their details included in the consumer database.
  
  

Clearly Stated Credit Terms

• The CCRA changes the FCRA to redefine a "firm offer of credit or insurance." The offer must clearly state all terms, including Annual Percentage Rate (APR), fees, and the applicable amount of credit or credit limit.
  
  

New Truth In Lending Practices

• The CCRA also changes the Truth in Lending Act to prohibit a credit card issuer from changing the terms of a credit card except under the following conditions:
  
  -Before the expiry or renewal date;
  -Until the lender has published all changes in terms.
  
  

New Restrictions on Credit Card Companies

• The Act restricts the credit card companies' practices in several other key ways:
  -Bans retroactive rate increases.
  -Prohibits a credit card issuer from imposing late payment if the payment is postmarked or sent electronically before the required postmark date;
  -Requires a credit card issuer to verify at the time the card is issued or credit line increased, that the consumer will be able to make the scheduled payments, based on their personal and financial circumstances;
  -Prohibits an increase in the annual percentage rate (APR) as a penalty unless due to a specific, material contract violation by a consumer.
  
  

New Rights for Consumers

• In addition, the Act offers new rights to the consumer:
  - The right to refuse changes to their credit card agreement.
  - The right to repay all existing balances on a terminated or expired credit card account under the original terms of the account.