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Legal vs. Illegal Credit Card Offers

Legal vs. Illegal Credit Card Offers

What are
Credit Card Offers?

Credit Card Offers are bids and proposals
furnished by credit card companies in order to amass new customers. Within the
vast expanse of Credit Card Offers, there exist a variety of factors, terms,
conditions, and components offered to prospective patrons. As a result, the
initial conditions and terms latent within Credit Card Offers set forth, oftentimes
regarded as ‘Introductory Offers’, will typically vary from the long-term
conditions implicit within respective credit card contracts.

Introductory vs. Long-term Credit Card Offers

The following is an example of introductory credit
card offers that are not typically subject to long-term facilitation:

0% APR and Interest-Free Credit Card Offers

Credit Card Offers advertising ‘0% APR’, which is
defined as the absence of an interest rate existing in conjunction with a
respective credit card, may exist within the initial approval of a credit card.
In certain cases, lending institutions may allow individual applicants approved
for the receipt of credit cards to undergo a year without interest. Interest is
defined as a percentage of a specific, gross amount that is added to the total
amount due for repayment.

Although the prospect of the absence of interest
is considered to be attractive, individuals are encouraged to investigate the
applicable interest and Annual Percentage Rates enacted subsequent to the
termination of the introductory offer.

Introductory credit card offers are subject to
immediate revocation in the event that the individual fails to adhere to the
scheduled repayment(s) expressed and required by the lending institution.

A Guide to the Legality of Credit Card Offers

Credit Card Offers will typically fall under the
jurisdictions of both Finance Law and Commercial Law, as well as be subject to
legislation passed with regard to both standards and practices of lending
institutions determined to be legal, ethical, and lawful.

Finance Law 

Credit Card Offers are typically regulated by this
legal field, which is responsible for the authorization and oversight of
legislation applicable to the exchange and the circulation of monies. This
takes place both transfer activity undertaken involving hard currency, as well
as the review of the terms and conditions latent within Credit Card Offers.

The precepts of Finance Law ensure that all terms
latent within Credit Card Offers adhere to the Truth in Lending Act, which
ensures that the terms of all Credit Card Offers are expressed clearly upon
applying for Credit Card Offers.

Commercial Law

Credit Card Offers are typically regulated by this
legal field, which is responsible for the enactment and the regulatory
oversight of standards and practices occurring within the commercial
marketplace. With regard to Credit Card Offers, statutory legislation
undertaken within the precepts of Commercial Law ensures that any nature of
predatory lending or financial exploitation is regarded as a criminal offense.

The Fair Billing Credit Act provides consumer
relief from billing procedures considered to be exploitative and deceptive. Primarily,
this Bill reviews the legality expressed within Credit Card Offers.

The CARD Act of 2009, or The Credit Card
Accountability, Responsibility, and Disclosure Act, disallows for both
predatory lending and exploitative measures undertaken by credit card lending
institutions upon making Credit Card Offers