New Protections are in Place to Help Credit Card Consumers!

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A comprehensive credit card law is in place which will help end the tricks that trap consumers in high cost credit card debt. A few provisions went into effect in August 2009, and most major provisions went into effect on February 22, 2010. Banks will probably continue to come up with new practices to switch things up within the bounds of the law so tell us what's been happening to you!

The new credit card law creates the following consumer protections:

• Restricts all interest rate increases during the first year
• Restricts interest rate increases on existing balances
• Increases notice for rate increase on future purchases (effective 8/20/009)
• Preserves the ability to pay off on the old terms (effective 8/20/009)
• Places limits on fees and penalty interest
• Requires fair application of payments
• Provides sensible due dates and time to pay (effective 8/20/009)
• Protects young consumers
• Restricts issuance fees on fee harvester cards
• Requires enhanced disclosures
• Establishes gift card protections

Click here to read a full summary of the Credit Card Legislation.

Read the Federal Reserve Board's Tips on the new Credit Card Law.