January 2,2007
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Your Cardholder Agreement
When you received your cardholder agreement pamphlet along with your shiny new credit card, it's possible that you immediately jettisoned the paperwork and dove straight for the plastic. Or maybe you tried to read it, but got bogged down in the legalese and decided to give up. Either way, it's evident that many consumers just are not aware of the contents of their credit card's terms and conditions. This fact is unfortunate, considering that the cardholder agreement is a very important document indeed.
Per Federal Reserve regulations, new credit card accounts must be accompanied by a written statement outlining the rules and regulations of the card. By law, the agreement must include the Annual Percentage Rate (APR), any annual fees, the formula for calculating monthly minimum payments, and the process of billing disputes.
It is perfectly legal for the cardholder to alter or amend the cardholder agreement at any time, with advance notice to the consumer. The rules governing advance notice vary from state to state, and must be followed according to the home state of the cardholder, not the issuer.