Credit CARD Act - takes effect today! Allows more consumer rights . . .

In today's tough economic climate, every dollar we can save and put in our pocket or invest into growing our business is an asset. Because of this, we keep a close eye on local and national politics, legislation and upcoming changes that will affect, positively and negatively, our clients. This is one of the reasons we started this blog as an outlet to get this information to you quickly and effectively.

I have heard a lot about the Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act) for awhile now and it is finally here. Today (Thursday August 20th) it has gone into effect and provides a lot of protections for consumers that were not previously there and takes some powers from credit card companies.

Some of the highlights of the law include:

• More advanced notice of interest rate and fee increases to consumers
• Minimum of 21 days for consumers to pay credit card bills without a threat of late fees
• The consumers right to opt out of interest rate and fee increases
• The consumers right to cancel their account while paying off the balance under the old, lower interest rate

The law includes many other changes - such as a ban on issuing and marketing credit cards to young adults - that will take effect February 2010.

So you may be asking yourself "How does this affect me?"

The answer is, in a few ways:

• Credit cards WILL BE harder to qualify for higher credit risk individuals (FICO scores under 650)
• Credit limits will be lower for individuals and small business owners
• Consumers have a safe haven of opting out of interest rate and fee increases allowing them to pay off their balance at the previous, lower interest rate.

The hope is that the Credit CARD Act will create protections for consumers, limit large lines of credit only to those who qualify therefore limiting damages done by a catastrophe (such as this most recent credit crisis), force credit issuers to notify consumers of increases in interest rates and fees and provide a more stable credit community which will in turn strengthen the overall economy.

To read the article in full click HERE or do a Google Search for "New Credit Card Law" and a lot of links come up.

If you have any questions or comments for us on how this will influence or affect you and/or your company moving forward, don't hesitate to call us at (801) 571-4011 or e-mail me at russ.white@rfgcpa.com

Russell White

Director of Sales & Marketing

Renaissance Financial Group CPAs

Our Website HERE

Our Twitter HERE

RFG's new "Client Care Package"

As our clients know, we are continually trying to improve our service and our relationships with them and potential clients. We are also trying to constantly improve the efficiency in which we deliver services and do work for our clients. With that in mind, we have taken time to develop our "Client Care Package". Our hope is that this package will create synergy between us and our clients and will simplify the bookkeeping process.

Here's the plan:

1. The Client will gather together all bank and credit card statements, fixed asset info, invoices, etc. on an established day each week and either drop them in a pre-paid RFG envelope, scan and e-mail or fax them so that RFG receives them consistently on the same day.
2. RFG will update the Clients books within a couple of days and send through e-mail an electronic file for you to download or a snapshot of your situation.
3. RFG will keep in a file all supporting documents that are sent and those will be returned in a file each month along with your Financial Statements.

Our hope is that this package will add a couple of things for our clients:

1. The Client will experience up to date books so they are aware of where they are in all aspects of their business more often than monthly.
2. The Client will receive monthly financial statements that will serve as bookmarks to track progress as the year goes along.
3. The Client will receive a quarterly meeting with David on the "State of the Company" where they will be able to talk strategy, issues and come up with ideas to improve the company.
4. RFG will be able to assist the Client with opportunities and issues as they arise because RFG will be in tune with the ongoing state of the business.
5. Annual tax returns will cost the client less due to the clean, correct bookkeeping that has taken place throughout the year.

The success of the “Client Care Package” comes down to a couple of things:

1. The Client must be diligent with sending in the documents on-time and complete.
2. RFG will be diligent in processing, completing and returning documents accurately and quickly to make the package work effectively.

This package has been in the works for a while now and the team at RFG is excited about the implementation. We hope this will make it easier for clients to have an ongoing understanding of their financial situation and how to manage it effectively.

If you have any questions about the “Client Care Package” or are interested in a quote, contact me at russ.white@rfgcpa.com or (801) 571-4011