New Credit Card Rules Coming in 2010
May 21, 2009 by Miranda Marquit
Filed under Finance
Yesterday, Congress passed the Credit CARD Act of 2009, which will introduce new regulations for credit cards. These will take effect in February 2010, and are aimed at 
giving consumers a little more protection from some of the practices credit cards have been fond of in recent years. Some of the changes include:
- Interest rate changes: Credit card issuers will no longer be able to charge interest rates retroactively on old balances — unless you are 60 days overdue for a payment. Also, credit card issuers have to apply your payments to the debt with the highest interest rate first.
- Due date change: Congress standardized credit card due date rules, stating that as long as the payment arrived by 5 p.m. on the day it is due, it is on time. This replaces disparate credit card rules that include 2 p.m. deadlines, and other issues.
- Notice of changes to credit card agreements: When a credit card company changes the terms of a credit card agreement, it will be necessary for the company to notify you at least 45 days in advance. Right now, companies can change the terms on a whim, without giving you time to do anything about it. Now consumers will have some time to make changes.
- Over the limit fees: The law forces credit card companies to get an “opt in” agreement from you before they can approve purchases that put you over your credit limit.
- 21 is the new age for credit card use: Anyone who gets a credit card under the age of 21 must have a co-signer, unless the person can prove he or she has sufficient income to afford the payments.
Most of these provisions will probably protect consumers (maybe not the little addition about lifting the ban on concealed weapons in National Parks) — at least once the February 2010 date comes through.
What do you think of the new credit card regulations?
image source: Daylife
My bet would that the law of unintended consequences will kick in when this legislation becomes law, and many good intentions will turn to doodoo.
I hold credit cards just for the rewards, and if those are cut back or I start getting penalized for paying on time (i.e., the responsible subsidizing the irresponsible) I will say goodbye to all credit cards and go to cash.
I agree that there will be some things that lawmakers didn’t intend. Sadly, it’s the way all legislation works. But you are right. If the credit card companies want to keep good customers, they will have to keep offering rewards.