Association of Independent Consumer Credit Counseling Agencies (AICCCA)

Press Release

AICCCA Advises Consumers Credit CARD Act Provides Protections But High Credit Card Balances
Still Need to Go

Four Tips for Wise Credit Use Post CARD Act

Fairfax, VA - February 22, 2010 — The majority of the provisions of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act) go into effect today, February 22, 2010. Consumers will now be protected from universal default clauses, double-cycle billing and inequitable application of monthly payments to balances. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) encourages consumers with high credit card balances to take advantage of the CARD Act protections and pay off high credit card balances.

"The CARD Act is a great incentive for consumers to pay down credit card debt," said Dave Jones, president, AICCCA. "Monthly payments will be applied more equitably and interest rates should remain more consistent, which will allow consumers to pay less in interest charges and more toward paying down principle balances."

AICCCA provides four tips for wise credit use post CARD Act:

Stop using credit to extend your income. Decrease your spending or increase your income to begin living within your means. Adding to your credit balances every month is a vicious cycle that is difficult to break, but it is essential for financial well-being to do so.

Pay down existing card balances quickly. Take advantage of the new provisions of the CARD Act and make a concerted effort to get your balances paid. If you have any cash-advance balances with high interest rates, your payment will be applied to that portion of your balance first, saving you money in interest charges.

Read all your mail from card issuers. Card issuers may make changes to existing cardholder agreements after the CARD Act goes into effect. Watch for changes to your current cardholder agreement including initiation of an annual fee, a change from a fixed-rate to a variable rate interest rate and/or new fees for an inactive account or to receive a paper statement.

Opt out of any changes you don't want. You can opt out of any proposed changes to your current cardholder agreement. Your account will be closed and you can pay off any balance under the original cardholder terms.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.