Home Depot, no interest, no payments for 6 months?

[Anonymous]

I just saw this when I was checking my card online, they are still advertising no interest and no payments for 6 months on purchases over $299. I thought the new credit card reform changed it so they couldn't do this anymore, anyone know anything about this?

[Woolfman]

I dont believe the reform has gone into effect yet .

[creditwherecreditisdue]

Considering the fact that there is a provision for the application of payments to such accounts included in the Credit CARD Act of 2009:

(b) Application of Payments-

‘(1) IN GENERAL- Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted.

‘(2) CLARIFICATION RELATING TO CERTAIN DEFERRED INTEREST ARRANGEMENTS- A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred.

I also don't see any other provision that would rule out such account arrangements.

[Creditaddict]

I just got 12 months no interest last week

[Anonymous]

I wasn't aware that promotional offers were being outlawed.  What is it you thought was not going to be allowed?  My only understanding is that certain fees will be prohibited, increased rates on existing balances in certain circumstances, etc. 

[creditwherecreditisdue]

Someone else reported in this forum a while ago that they were told this by an issuer. I didn't believe it then and I do not believe it now. If it were true then why would the Credit CARD Act of 2009 include a provision then insures that your payment be properly applied to the deferred account if you have mixed APR balances?

[Anonymous]

I agree.  How would this be "consumer" minded or friendly to disallow promotional and interest free periods.  I for one wouldn't like that.

[creditwherecreditisdue]

---

@Anonymous wrote:

I agree.  How would this be "consumer" minded or friendly to disallow promotional and interest free periods.  I for one wouldn't like that.

---

Or, futhermore, to compel the issuer to apply your payment in such a way that it might be impossible for you to pay off the deferred finance balance and avoid the finance charge due to the payment being diverted to a higher APR balance.

[elaine829]

I got a letter from home depot they will still have the no interest but you will have to make a minimum payment with the promotional because of the new law. Kays Jeweler is that way too they have no interest set up but you still have a minimum payment you have to make..

Message Edited by elaine829 on 01-24-2010 06:20 PM

[creditwherecreditisdue]

That's as it should be and I think it's pretty fair.