Mastercard has updated its Cardholder agreement to make it consistent with the new credit card regulations from the Canadian federal government. However, many of these changes don’t take effect until 2010 September 1.
Here are the highlights:
You must provide your consent before your credit limit is increased.
End to Double-Cycle Billing
You won’t be charged interest on new purchases if you pay your bill in full even if you didn’t pay it in full the previous month.
Cancellation of Card
Your card can be canceled if you have no activity for 9 consecutive months.
The first two changes are definitely customer-friendly. To compensate, we can expect some combination of higher credit card interest rates, lower credit limits, and higher credit-worthiness to acquire a credit card. Banks and credit card companies are in this business to make money, and we have to expect them to shed unprofitable customers.