FREQUENTLY ASKED QUESTIONS ABOUT CREDIT CARDS
EACH YEAR, THE GENERAL receives thousands of Texans about credit cards. involve everything interest they can businesses can a customer pays with a credit card. Texans with questions about their credit cards should first review their credit card agreement. Frequently, these documents are lengthy and written in very fine print. Though it may take time, potential customers should read this agreement thoroughly, ideally before signing up for a card.
Texans with credit cards should credit card agreement. documents are very fine print. time, potential this agreement before signing up Many debtors were lured into cards by promotions even “zero interest” rates last a few to change for which are specifiWhile Texas law Many debtors complain that they were lured into high interest credit cards by promotions that touted low or even “zero interest” offers. Often, these rates last a few months and are subject to change for a number of reasons which are specified in the agreement.
While Texas law generally caps credit card interest, the interest rate limit only applies if the bank issuing the card is chartered in Texas. Most credit card companies are based out-of-state and therefore not subject to limits imposed by Texas law. While Texans with good credit histories are generally offered a relatively low rate, many things can
Credit card holders sho uld clo se watch on each month’s to find out if their interest suddenly changed. This might even if the card holder has made payments on the card and outstanding debt. To dispute rise in interest, card holders contact the credit card company attempt to negotiate a better Just as credit card companies FREQUENTLY ASKED ABOUT CREDIT CARDS trigger a substantial rate increase, including being even a single day late on a payment.
Texans also should be aware
by Texas Attorney General Greg Abbott
that many credit card companies
regularly monitor customers’ overall
creditworthiness. This means that OFFICE OF THE ATTORNEY
a relatively low rate, many trigger a substantial rate including being even a single on a payment. interest rates can be increased if the receives inquiries from
customer is delinquent paying another Texans who have questions
debt, such as an auto loan or mortgage. cards. Their questions
Most credit card agreements also allow from the amount of
Texans also should that many credit card regularly monitor customers’ creditworthiness. This means interest rates can be increased customer is delinquent paying debt, such as an auto loan or Most credit card agreements the issuer to periodically rate at its discretion. the issuer to periodically change the be charged to whether
rate at its discretion. impose surcharges if
Credit card holders should keep a for a good or service
close watch on each month’s statement
to find out if their interest rate has
questions about their
suddenly changed. This might happen
should first review their
even if the card holder has made timely agreement. Frequently, these
payments on the card and all other lengthy and written in
outstanding debt. To dispute a sudden
Though it may take
rise in interest, card holders may customers should read
contact the credit card company and thoroughly, ideally
attempt to negotiate a better rate. for a card.
Just as credit card companies are complain that they
permitted to raise interest rates, they are
high interest credit
generally allowed to change other terms, promotions that touted low or
including late fees and the minimum interest” offers. Often, these
payment amounts. Again, if terms months and are subject
abruptly change from one statement to
number of reasons
the next, card holders should contact ed in the agreement.
their credit card company to find out generally caps credit
why, and see if the company is willing ASKED QUESTIONS
to reinstate the original terms.
In Texas, a business generally CARDS
cannot penalize customers who pay
for a good or service by using a credit card. Businesses that add a surcharge
to those who pay by credit card might
be violating provisions of the Texas
things can
why, and see if the company is willing
Finance Code. Usually increased
increase,
to reinstate the original terms.
payment fees can only be charged by
single day late
In Texas, a business generally
government entities, such as for the
cannot penalize customers who pay
payment of property or other taxes and
be aware
for a good or service by using a credit
fees required by a government agency.
companies
card. Businesses that add a surcharge
However, businesses in Texas can
customers’ overall
to those who pay by credit card might
discount the regular retail price of an
means that
be violating provisions of the Texas
item for customers who pay cash instead
increased if the
Finance Code. Usually increased
of using a credit card. Consumers who
paying another
payment fees can only be charged by
are charged extra for using a credit card
mortgage.
government entities, such as for the
should report it to the OAG by calling
also allow
payment of property or other taxes and
(800) 252-8011 or filing a complaint
change the
fees required by a government agency.
online at www.texasattorneygeneral.gov.
However, businesses in Texas can
Similarly, businesses that accept
should keep a
discount the regular retail price of an
credit cards are generally forbidden
statement
item for customers who pay cash instead
from setting a minimum amount to be
rate has
of using a credit card. Consumers who
charged to the card. While there is no
might happen
are charged extra for using a credit card
law that prohibits this practice, virtually
made timely
should report it to the OAG by calling
all agreements that merchants have
all other
(800) 252-8011 or filing a complaint
with credit card companies prevent
a sudden
online at www.texasattorneygeneral.gov.
businesses from imposing a minimum
holders may
Similarly, businesses that accept
charge for card users. Card holders
company and
credit cards are generally forbidden
who are faced with this should report it
rate.
from setting a minimum amount to be
to their credit card company.
companies are
charged to the card. While there is no
