Right to decline offer after approval (Credit Card Act)

[heirophant]

I can't seem to find this information anywhere, so I was wondering if anyone had any information on the topic.  When the new CC laws were being proposed, I remember there was a provision that would allow consumers to accept or decline the offer the CCC made when you are approved for a new CC in the terms and conditions mailed to you with the new card.  If you declined their offer to you, the new account would not show up on your credit report.  Is this still on the table?  Will it be enacted this year, or was that struck from the bill?

[Anonymous]

It was offered as long as you opted out before the increase happen, so If in september they said it was going to increase in january than you had up until that date, or the date they said to opt out, which means they will close your account, keep you at the current rate, and nothing else changes, you must pay as normal, pay the minimum, you can get late fees and other charges if you don't follow the regular rules, the only thing that happens is you don't get the high rate, unless of course you miss a payment or don't pay what they ask you than it is a different story, most companies allowed you about one to two months to do this, it had nothing to do with the new laws it's just something they offered.. now HSBC did this to me, i never got the letter, they jacked me up, If I wanted I could of gotten it closed and the same rate but I will just pay it off and never use the card agian, because closing your account is going to hurt your score, and could hurt the age of your accounts, and many other factors.. If you are going from 4% to 20% and you owe a few thousand, and you don't have the money to pay it off your better off geting out of it and risk dropping your score or it could cost you thousands of dollars, just put in the factors and decide from there, if it's one of your only cards than it's a hard choice to make.. If you can pay off the balance and PIF on it than I wouldn't worry, if it's too late try calling them up and tell them you knew nothing about the increase and try working them.

[Anonymous]

with the new laws they cannot rate jack you, or alike for any reason unless you are late or miss a few times with the company, and being late on one won't affect the other..

[heirophant]

Thank you, Ryan for your reply, but I think you misunderstood the question.  To clarify, I am only trying to find out if a proposed section of the card act I REMEMBER is actually being enacted or not.  This would apply to new applications.  You apply for a credit card and the credit card company approves you.  They then send you the card, with terms and then under the proposed law (which I am questioning whether or not has or will be enacted), you may review these terms and call them and cancel the card if you do not agree.  The new account will not show up on your credit report.  This was to make it more fair for consumers to control whether or not a new account appeared on their credit report if they did not really activate the account in the first place.  As it is now, if you apply for a card and are approved, it will show on your credit report for 10 years regardless of whether or not you have actually activated it.

[Anonymous]

I wouldn't think it would take into affect into at least late march if it did.

[Woolfman]

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@Anonymous wrote:
I wouldn't think it would take into affect into at least late march if it did.

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The Credit Card Act of 2009 starts Feb. 22. 

[MarineVietVet]

Here is the entire legislation. I can't find what you are asking about. Perhaps you'll have better luck.

Credit Card Act

[jaysdad2k]

I remember reading about that too! It seemed like one of the few good things about the Act. In the insurance business, we might call that a "Free Look" provision. If you don't like the plan just turn it back in and we'll pretend that it never happened.

Too bad if it never made it to law.

[TangMeister]

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@heirophant wrote:
I can't seem to find this information anywhere, so I was wondering if anyone had any information on the topic.  When the new CC laws were being proposed, I remember there was a provision that would allow consumers to accept or decline the offer the CCC made when you are approved for a new CC in the terms and conditions mailed to you with the new card.  If you declined their offer to you, the new account would not show up on your credit report.  Is this still on the table?  Will it be enacted this year, or was that struck from the bill?

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Yep, I remember this as well and actually had one credit card issuer abide by this in November when I app'd, so perhaps it will be mandatory later this month for all CCCs.  Supposedly you can decline the offer all the way up to activating the card and it won't report.  Of course, I'm sure the hard inq sticks to your credit report, regardless of your choice.   

[Anonymous]

I give seminars and workshops on credit and have read the provisions of the CARD act several times, and have not seen anything regarding refusing a new card that has terms that are different than the offer for which you applied. Like you, I do remember it being a part of the discussion. At one point though, it was a regulatory agency that was making changes. It seems that Congress saw this and realized it would make them look good if they jumped in made it a law that THEY passed, so a lot of changes occured between the original regulatory proposals and the actual legislation. It really should be a provision, though. As it stands now, if you decide to close the account immediately, you will still have the closed account on your credit as if you actually had the card at some point. It is not fair at all that you should show a new account. It would be like showing you had a car loan if you refused the offer made to you by the finance manager at a car dealership.