PRESS RELEASE

Dallas - February 15, 2010 - More provisions of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 will go into effect on February 22, 2010, meaning consumers will begin to see even greater changes to their credit card statements. Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas) is educating consumers on the changes that will affect them the most.

"The Credit Card Accountability Responsibility and Disclosure Act of 2009 was created to help consumers get out of debt, but there are many things individuals should be aware of to be successful in understanding the new terms and paying off their debt," said Todd Mark, vice president of education for CCCS of Greater Dallas.

In addition to prohibiting excessive fees and limiting credit to people under 21, major provisions of the Act include:

Protection against arbitrary interest rate increases: Credit card companies must give cardholders warning 45 days prior to any interest rate increases. This provision also allows them to cancel their card and pay off their balance at the existing rate, and gives cardholders three billing cycles to decline any new terms. It also prevents creditors from retroactively increasing interest rates on existing balances in good standing, as well as arbitrarily changing the terms of their contract.

Flexibility in credit card limits: Credit card companies must give consumers the option of setting a fixed credit limit, and the provision prevents creditors from charging over-the-limit fees on cards with fixed credit limits.

Protections for cardholders who pay on time: The new law will prohibit "double-billing cycles" or charging interest on debt that is paid during the grace period. It also prohibits fees on the remaining interest-only balance if the cardholder pays on time.

Prohibits tricky due dates: Credit card companies are required to mail billing statements 21 calendar days before the due date and accept payments made up to 5 p.m. EST on the due date as timely. The law also requires the due date to fall on the same date each month, unless it's a legal banking holiday - preventing the requirement of payments on a holiday. It will also prohibit late fees when a cardholder can prove the bill was mailed within seven days of the due date.

Protections from misleading terms: Creditors will be prohibited from using the terms "fixed rate" and "prime rate" in misleading ways by setting definitions for those terms. Cardholders can also decide to reject preapproved credit cards up to the moment of activation without an impact on their credit report.

Fair allocation of payments: Credit card companies must apply payments to the debt with the highest interest first.

Protection for vulnerable consumers: The law will require that fees for subprime cards exceeding 25 percent of the credit limit be paid up front before the card is issued.

In addition to these provisions, the CARD Act requires creditors to include a toll-free number for legitimate nonprofit credit counseling on credit card statements.

CCCS of Greater Dallas is helping consumers become debt-free and make smart financial decisions in 2010 through free budget review and credit counseling sessions, and free reverse mortgage counseling. CCCS of Greater Dallas will be providing free tax preparation in partnership with the United Way of Metropolitan Dallas from now until April 15. Check www.cccs.net for class locations and dates.

For more information on financial education and free debt seminars, call (800) 249-2227 or visit www.cccs.net.

About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit counseling and debt management service. Established in 1974, CCCS of Greater Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS of Greater Dallas is a HUD approved housing counselor and serves as one of eight counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS of Greater Dallas' free seminars or the agency's services, visit www.cccs.net.