See how the new credit card laws will affect you.

You have probably heard about new laws (the Credit CARD Act of 2009 and revisions to Truth In Lending) that are bringing many changes to the credit card industry. These changes apply to all consumer credit cards, including retailer credit cards.

To help you stay informed and maintain healthy credit in this ever-changing economic environment, here’s what to expect from your credit card issuers, including retailer branded credit cards.

Your monthly credit card statement is changing.

Credit Card account statements will be easier to read and will give you more information at a glance, including:

The estimated time it will take you to pay off your credit card balance by making only the minimum monthly payment.
The amount you’d need to pay each month to pay off your credit card balance in about 36 months.
Summary of fees and interest paid year-to-date.
An easy-to-understand late payment warning describing the potential impact of late payments.

More advance notice.

Receive a minimum of 45 days notice before any significant change in credit card account terms is made to your account.
If you decide you don’t want to accept the change of terms, you can cancel your card prior to the effective date of the new terms.

Limitations on interest rate changes.

Interest rates cannot be raised on existing credit card balances, except when:

You have an introductory rate, a promotional rate, or a special payment arrangement that expires.
You have a variable rate on your account.
Your credit card payment is more than 60 days past due.

Otherwise rate increases will only apply to new transactions.

Predictable credit card due dates.

Your credit card payment due date will be the same day, every month.

Avoid pay-by-phone fees.

It won’t cost you anything to make credit card payments through the card issuer’s automated phone system.
You’ll only be charged a fee if you speak to a customer service representative to make a payment the same day.

Time to review your monthly credit card statement.

You will have a minimum of 21 days between the day your credit card statement is mailed and your payment due date.

High interest credit card balances are generally paid down first.

Any amount paid in excess of your minimum payment due each month will be paid to your highest interest rate balance first. The only exception to this is:

the 2-3 billing cycles at the end of a deferred interest promotion.

During this time the credit card issuer will apply any payment in excess of your minimum payment due to your expiring promotion. This will ensure you continue to have the best opportunity to pay your promotional balances before expiration.

No over-credit limit fees.

Pay no over-credit limit fees when you exceed the credit limit on your credit card. However, any transaction that will cause your balance to exceed your credit limit may be declined.

Protection for those under 21.

Young adults under the age of 21 must provide an independent ability to repay along with their written or online application for credit or requests for credit line increases.

Easy access to credit card agreements.

If you want a copy of your individual credit card agreement, you can request it either via a web site or a toll-free number.

How to get more information?

For more information on the Credit CARD Act of 2009 visit the Federal Reserve Board website.

Some Words of Advice

While the new credit card laws are designed to help customers maintain healthy credit, we also recommend:

That you pay close attention to your accounts.
That you read your credit card statement carefully each and every month.
If you have questions about your credit card account, please call the customer service number on the back of your credit card.