More work to be done on credit cards!

Congratulations to Sean Kleefeld with 4,309 votes — grand prize winner of the 2nd Annual Consumers Union Dangers of Debt Image Contest! Click here to see all winning images.

A comprehensive credit card law is now in place that will help end the tricks that trap consumers in high-cost credit card debt. You can learn more about these key rights below.

But we’re not done yet – the Fed still needs to hear from you!

For the next month or so, the Federal Reserve Board will be accepting comments from consumers who have something to say about two important provisions in the law – reviews of interest rate hikes, and limits on penalty fees, which won’t go into effect until Aug. 22.

We believe the Fed’s proposal on these provisions should be stronger, and not give the banks so much leeway when it comes to determining if interest rate hikes or penalty fees on your account are reasonable.

We have provided an easy way for you to comment to the Fed. Just go to www.creditcardreform.org and tell you story in the box provided. Once the comment period is over (date has yet to be determined) the Fed will review what consumers are saying, make any changes, and issue the regulations in their final form. (Click here for a full summary of the proposal.)

The new credit card law includes these 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
• Preserves the ability to pay off on the old terms
• Requires fair application of payments
• Provides sensible due dates and time to pay
• Protects young consumers
• Restricts issuance fees on fee harvester cards
• Requires enhanced disclosures
• Places limits on fees and penalty interest (effective Aug. 22)
• Requires banks to review rate increase every six months (effective Aug. 22)
• Establishes gift card protections (effective Aug. 22)

Help keep us informed.

Banks will continue to come up with new practices designed to get more money out of you, so tell us what's been happening with your credit card!

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.