Congress and the President acted on credit card reform. Victory!

Congratulations to Mathew Gauvin Winner of the 1st Annual Consumers Union Dangers of Debt Cartoon Contest! To participate in the 2nd annual Dangers of Debt contest click here!

Last year Congress enacted a comprehensive credit card law to end the tricks that trap consumers in high cost credit card debt. A few provisions went into effect in August 2009, and more major provisions are in effect on February 22, 2010. Banks in the meantime have been raising rates and changing the terms of credit card contract for millions of consumers and things will continue to changes within the bounds of the law. 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.