CREDIT CARDS » Credit Card Rates

For years regulations on credit card companies have been quite loose and there have been much controversy among consumers who complained about hidden credit card fees and charges that had caused many consumers a lump sum of money.

After 30 years of being able to go about business in whatever manner the credit card companies pleased, which oftentimes took advantage of unsuspecting credit card consumers by raising interest rates and the like, now Federal Regulators have moved to implement new credit card restrictions on credit card companies which will take into affect next year in July of 2010. This will help to protect consumers from getting the short end of the credit card stick. (Find out all you need to know about the new laws)

In more detail the laws are being implemented to protect consumers from unsavory practices by the credit card companies and to ensure that theFederal Trade Commission Act is being adhered to. TheFederal Trade Commission Act is responsible for protecting consumers from "unfair and deceptive trade practices."

The new rules will prevent the credit card companies from:

• Allowing deceptive offers of credit
• Unjustly adding fees for issuing credit or making it available
• Placing inequitable time constraints on payments
• Charging too-high fees for exceeding the credit limit because of holds on the account
• Partaking in double-cycle billing practices

However, not everyone will benefit from the changes being implemented by the credit card company. Some exceptions to the rule are business credit cards, as they will continue to operate on a different set of guidelines and the new laws only apply to consumers.

Additionally, the terms for the new rules do not specify those returning home from military duty to be a reason for not raising rates (although this exception is currently under review).

Check out the complete story on about new credit card laws.

Your credit card company has probably been sending you a bunch of pamphlets with account changes in tiny print lately.

Why?

The Credit CARD Act, which was approved last year, is not in effect - well, partially. This act was created in response to some credit card companies using sneaky tactics to get more money from consumers in the form of random interest rate hikes, double-cycle billing and others.

Starting February 22, 2010 many credit card companies are going to have to change their practices, which explains all the mail you've been getting. We've been covering this act for quite a while now, so we've got plenty of information for you. We can answer the following questions:

Am I Affected By These Laws?

Not everyone will see changes to their credit card, like people with business credit cards. However, the majority of consumers will see a difference.

What Changes Will I See?

Some changes went into effect in 2009, but most will happen in February, like:

• Less targeting of students and other young adults
• No more online banking fees
• Guarantees on rates

A few of the changes will occur in August, as well.

Is It Just Credit Cards?

No. You'll also see changes in gift card practices, so you can feel better about giving those to your friends and family as gifts.

How Does the Credit Card Industry Feel About the Changes?

Of course, this means some lost revenue for credit card companies. As much as you may want to make them out to be the big, bad guy, some companies have started adhering to the rules early in order to implement fair business practices.

That's not to say that there aren't some companies who are finding sneaky ways around the rules.

There will be lots of changes coming up, but they will all be better for your wallet. If you continue paying off your debt, keep an eye on your credit score and start saving, these new laws will only make your life easier.

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