Credit Legislation

by Wade Barnes 5. November 2009

First, I apologize for being dormant with posts recently.  As you are probably aware, the credit industry has been going through some fierce revisions, many of which are overdue.  We can debate the pros and cons in another conversation but essentially this works to remove dishonest lenders and/or lending practices and create a template for explaining loan terms in a consumer friendly fashion. 

You may notice some changes from your credit card provider thanks to the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009.  Consumers Union has done a nice job explaining the provisions of the act and how they may affect you and your account.  As the legislation is making it tougher to increase credit card rates in the future, many companies are raising rates now and in some cases for no apparent reason. 

Changes to the Real Estate Settlement Act (RESPA) and Regulation Z are set to take place in January.  These new rules work to present the costs involved with obtaining a mortgage in an easy to read document.  The goal is to create a shopping document where you can compare the rate and costs of the loan between lenders.  There are also provisions in place to keep lenders from increasing fees after the initial disclosure (within reasonable measures).

As there are pros to the new legislation, there are also cons.  I am happy to discuss any questions or concerns you may have.  Feel free to share your thoughts as well.

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