The letter I received from my credit card company this afternoon is not likely to get much coverage, but as a self-proclaimed “credit geek” I think it deserves a few words. Why? It is the first notification I have received that I believe is a direct reaction to the recently passed Credit CARD Law.

 
First, a little background on the account:
This is an account I’ve had with a major credit card issuer for well over a decade. I have paid off my purchases in full each month. Over the years, I’ve seen the amount of time I have between the time I receive my statement and the due date decrease from maybe 22 days to somewhere around 17 days. Shortening this window makes sense from the credit card company’s perspective since they are in essence lending me money, at no cost, each time I make a purchase and have a few weeks before I receive the bill and pay off the charge. Thus, the shorter the term, the lower their cost. (After the first late fee, I was quickly conditioned to pay almost as soon as I receive my bill.)

The reason this letter caught my attention (and probably won’t get any big media coverage) is that it was sent to give me good news.

My credit card company has extended the amount of time between when they mail me my statement and the time I have to pay. That’s right, they are now giving me additional days from the time they mail me my statement until my payment is due. Since this isn’t an economically good deal for the bank, I can only assume it is a reaction to the new Credit CARD Act of 2009, which requires banks to send statements at least 21 days prior to the due date. While banks have until February 2010 to follow most aspects of the new law, two parts of the law went into effect in August 2009. First, the requirement that banks give you at least 21 days between mailing you your statement and the payment due date. The second is that they must now give you at least 45 days notice of any material changes to your account agreement. This includes any changes in finance charges, interest rates or fees

You can be sure we’ll be watching our mailboxes for the letters that will give us all more insight into how banks will make up for their lost revenue and increased expenses that will result from the new laws. We’d also love to hear from you, our visitors, about what you are seeing from your credit card companies. Please drop us a line through our Feedback Form on the Contact Us page.

For our perspective on all of the important aspects of the Credit CARD Law, please visit our credit blog.