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Consumer assurances help to boost paperless payments for recurring service invoices, including Utilities, Healthcare, and Subscriptions

Following the February 22nd “Credit Card Accountability, Responsibility and Disclosure Act” (the Credit CARD Act), BillingTree Inc., one of the nation’s leading on-demand payment processors anticipates a sharp increase in electronic-payment adoption as a result of increased card-holder confidence and interest-rate cap perceptions. Companies offering electronic credit card payments via the web and telephone stand to improve their collections substantially as a result of consumer awareness to the new regulations.
According to a recent survey conducted by CFA/CUNA in January, six-in-ten consumers were aware of the new protections offered by the Credit CARD Act. Furthermore, consumer misinformation surrounding the reforms includes the following: 42% believing the new rules completely prohibit interest rate hikes, 36% assume late fees will be limited to $35, and 31% believe interest rates are capped at 20%.
Among the new rules in effect on February 22, 2010 are as follows:
Consumers must be given a 45 days’ notice of any changes in the interest rates of future balances or in other key terms of a credit card account.
Hikes in the interest rates of existing balances are generally prohibited.
Consumers have the right to “opt out” of significant changes that might be imposed on their accounts.
Customers who maintain monthly balances must be told the length of time it will take to pay off that balance if they make only the minimum monthly payments.
Bills must be mailed at least 21 days before the payment is due.

SOURCE BillingTree