New Credit Card Provisions Benefit Consumers

The changes are some of the most important new consumer protections we’ve seen in recent years. Joe Ridout, spokesman for Consumer Action, says starting in late February, credit card issuers have to play by different rules when it comes to interest rates, payment due dates, over-the-limit fees, and disclosure.

One of the biggest consumer benefits is that banks cannot increase interest rates on old unpaid balances. Old rates apply to old balances. If you make a payment late, the issuer has to wait 60 days before raising your rate for being delinquent. When payments are due on a holiday, you will have until the next business day to pay and still be considered on time. And consumers will have to agree to all a credit card company to charge fees for exceeding the credit limit. (Who’s going to do that?) Mr. Ridout says we can expect more changes in gift cards rule later this year.