Lightspeed Research PowerPoint Template

Implementation of Credit Card Legislation• February 22 marked the long-anticipated deadline for compliance with severalremaining key provisions of the 2009 CARD Act.― Phase 1 – Implemented on August 20, 2009:• Cardholders must be provided 45-days notice of significant changes in terms• Minimum of 21 days between statement delivery and payment due date― Phase 2 – Implemented on February 22, 2010:• Issuers are to disclose the period of time and total interest that will be paid if a consumerrepays a card balance by making only the minimum monthly payment• Limits on the re-pricing of existing balances, except in the case of a payment more than60-days past the due date or promo rate expiration• Penalty rates to be re-examined six months after they are applied• Payments in excess of the minimum must be applied to highest interest rate balances first,except for deferred interest balances• Prohibits issuers from setting early morning deadlines for credit card payments; paymentsreceived on weekends or holidays will not be penalized and credit the next business day• Over-limit fees cannot be charged unless cardholder has agreed to allow the issuer tocomplete over-limit transactions• Limits APR, fee or finance charge increases within the first year of account opening• Universal default and two-cycle billing will no longer be permissible• Promotional rates must last for at least 6 monthsCopyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.16