How the Credit CARD Act affects American 1

The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 took affect on Thursday last week, implementing major changes to how credit unions and banks relate to credit-holding members.

If you hold a Visa, line of credit, home equity line of credit, or SimpleLoan plan with American 1, your terms may change – but not much.

Unlike many of the big bank credit cards we’ve highlighted in the past, the new Credit CARD Act changes don’t apply to American 1 policies because we didn’t adhere to many of the abusive practices the law seeks to fight. For instance, we don’t raise your credit card interest rate if you make a late payment, and we don’t change the terms of your credit agreement very often.

But still, the law does affect several of our policies. The most noteworthy is that all open-ended loans, like credit cards and lines of credit, now have a due date on the 25th of each month. Before, we let you pick your own due date. The Credit CARD Act, however, requires us to give 21 days notice before your payment is due, which means we’re moving everyone to one due date to comply with the law. Your account statement, mailed at the beginning of each month, will now serve as your due date notification.

We put together a Frequently Asked Questions section to highlight how the changes will affect you. It’s not comprehensive, but we do want to answer any questions you have, and help you manage the new due date rules.

As always, don’t hesitate to contact us with any questions you have.

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