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Some Credit CARD Rules Happen Earlier than Others

This article was written by in Credit. 1 comment.

When the Credit CARD act passed earlier this year, we weren’t expecting to see many changes until February 2010, unless taken voluntarily by individual companies.

Thankfully (for me, anyway, since I have a personal vendetta against many aspects of credit cards, admittedly due in part to my own foolishness), some of the rules described in the law were designed to go into effect earlier than others. As the Wall Street Journal reports:

Credit card issuers, starting next week, will be required to give consumers 45 days’ notice before raising their interest rate or making other significant changes to a card plan’s terms.

I don’t see this as a punishment, or a blow to capitalism in any way. I think it levels the playing field, assuming life is a competition between a consumer and the huge corporations who do everything they can to maximize profits.


Issuers also must begin sending bills 21 days before payment is due.

In related news, Discover and American Express are getting rid of fees for exceeding your credit limit. A part of the upcoming Credit CARD rules also has something to say about those fees:

The law doesn’t require issuers to eliminate over-limit fees, but it will prohibit them from imposing these charges unless consumers say they want the ability to exceed their credit line.

Once again, I find that totally fair, and I think it’s a shame that we had to have the legislature step in and finally put a stop to such offensive practices.

New Credit Card Rules To Take Effect Next Week , Jessica Holzer, Dow Jones Newswires, August 13, 2009

Discover, American Express end fees for exceeding limit, Kathy Chu, USA Today, August 11, 2009

Updated February 10, 2011 and originally published August 14, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Smithee formerly lived primarily on credit cards and the good will of his friends. He is a newbie to personal finance but quickly learning from his past mistakes. You can follow him on Twitter, where his user name is @SmitheeConsumer. View all articles by .

{ 1 comment… read it below or add one }

avatar Randy

Back in May I posted my thoughts on this bill – http://newfromclt.blogspot.com/2009/05/credit-card-bill.html.

In summary, congress passed a law that basically had already been covered by the Federal Reserve. I agree it makes sense for credit card companies to notify you or rate changes in advance and most of the other parts of the bill just make sense. The Payment Card Industry should have declared all of these items a standard and “encouraged” issuers to adopt them.

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