So in case you haven’t heard about it in the news, as of February 22 (Monday) the new credit card laws (the CARD act) went into effect. The idea behind it was to protect consumers, which I guess it will in some cases, but the credit card industry is a pretty big one that will find a way to do what they want to do. Either way, there are a lot of new changes coming down the pike with it. These are just some of what is/will be happening…
- Increase of Fees. Since the new laws are costing the credit card companies billions, you can expect to see many more fees on your statements.
- Cutting back on rewards. They are particularly interested in cutting them back for customers who don’t carry a balance.
Merchant Fees being raised. This will in turn be passed on to us as shoppers.- Statements will come earlier. They now need to be sent 21 days before the due date.
- Over-limit fees. Customers will now have to “opt-in” for over-the-limit spending.
- More difficult to get approved. I think this is probably a good thing.
- Rates will probably increase. Customers who pay late, or don’t pay are likely in for it.
- Minors can’t have cards. Those under 21 will now need a co-signer.
- Same due date. Payment due dates must be the same every month.
There are a lot more details about the new credit card laws and if you are interested, you can check out some of these articles below to find out more…
- New Credit Card Legislation Starting in February 2010
- New Credit Card Act and Credit Card Laws
- New Credit Card Rules
- Take Full Advantage of the New Credit Card Rules
- New Credit Card Law Starting February 22nd
- New Credit Card Rules Take Effect Today
- New Credit Card Law
- Changes with Credit and Debit Cards
- New Law on Bank Overdraft Fees
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{ 6 comments… read them below or add one }
This is very interesting. Part of me is glad that someone is at least attempting to tame the credit card companies a little bit and another part of me is nervous about yet another aspect of capitalism being controlled by the federal government. The new law that requires a co-signer for anyone under 21 is probably a good thing, but its a little strange too. I got my one and only credit card shortly after I turned 18, and I am still not 21 for another couple of months. It’s odd to think that even though I’ve been married for almost two years I would still need a co-signer to have a credit card… Anyways thank you for providing some plain-spoken versions of the new laws.
S
I am hoping that this won’t make too much of an impact on my credit card. If I start getting an annual fee, I’m canceling it!
Bob, I appreciate your succinct but informative overview of the new laws. Now I know what to look for in upcoming statements.
-G
I am with you Mrs. Money we struggled one year and half to pay off the credit cards debt. If they start charging for keeping their card, i will do the same. In fact, i will cancel and mail it back to them.
Thank for your information. I once think to reject my credit card.
I just got off the phone with Citibank. I have two accounts with them. One has been open for 10 years with no defaults,and the other has been open for 7 years with no defaults. I was forced to opt out on both cards or my APR was going from 8.30% to 29.99%. One card has been forced closed since I opted out. The other remains active until the expiration date. At that time I will have to pay the full balance.
Out of curiosity I called and asked about the new law stating no raise in APR’s until the account is 60 days late.
Well Citibank explained that they will send you a letter first asking you to close the account. Then you may keep the normal rate until the card is payed off.
Also if you are 1 hour late they will still charge a $39.00 late fee.
Citibank card holders wake up. This is nothing more than Wall Street blackmail.
I believe if a mass amount of cardholders display their dissatisfaction, Citibank and others will be forced to offer us more reasonable terms and rates. Or they will go under with no bail out this time