New Credit Card Rules Go Into Effect

02.22.10 | FL News Team

The Credit Card Act of 2009 designed to end predatory billing practices in the credit and banking industry goes into effect today. Signed into law by President Obama last May, there are many new rules regarding finance and interest rate charges allowed and not allowed for credit cards. Among them, lenders won't be allowed to double-cycle their billing finance charges. That means the end of paying interest on previously paid balances.

 Also, lenders can't boost the interest rate in the first 12 months of opening a credit account unless an increase was disclosed when the card was first issued. Card issuers are required to give 45 days' advance notice before interest rates can be increased. There are also new rules regarding fees for credit card payments made online, by mail or over the phone, minimum payments, and fees for exceeding a credit limit. Card issuers violating any of the new rules will face significant penalties.