The credit card reform is now a law. Friday afternoon, May 22, 2009, President Obama signed the rules making them part of the Truth in Lending Act. The new rules go into effect on July 1, 2010. Some of the changes include:
- No interest rate hikes on pre-existing balances unless the increase is the result of a 60-day delinquency.
- Interest rate increases and other significant changes to your credit card agreement require a 45-day advance notice.
- Billing statements must be sent 21 days in advance of your payment due date.
- No over-the-limit fees unless you've requested (opted-in) to have over-the-limit charges processed.
- No more universal default.
- No more double billing cycle finance charges.
- No interest rate increases in the first year of a credit card unless a promo rate expires or you've been 60 days late on your payment.
- Payments received by 5:00 on the due date or the next business day after a holiday or weekend are considered on time.
- Consumers under 21 cannot receive a credit card unless they've made an application and have a parent co-sign or an prove they have the means to repay the credit card balance.
These are just a few pieces of the new legislation. For complete details, read Credit Cardholders Bill of Rights