New Credit Card Laws in Effect

New credit card laws went into effect in February and spell out positive news for credit card users - us consumers. Changes include how the interest rate is charged, annual fee limits, to payment due dates and more. Below is a brief overview of changes that are now taking place according to the Credit Card Act of 2009.

1. Charging of interest by credit card companies - No longer can the credit card companies apply interest rate changes to existing balances. If a credit card company increases its interest rate it can only apply it to new charges.
2. Increase of interest rate - The credit card companies can not raise your card/s interest rate of a new card for the first year.
3. Annual or Application Fee - according to the new laws can't be more than 25% of the card's credit limit.
4. Over limit fees - will have a upper limit cap
5. Payment Date - payment due date will always be the same day each month. If your payment due date is 3rd of March, it will be 3rd of April, May etc.
6. Age restriction - Anyone under 21 of age must have a parent or an adult co-signer. Income evidence may also be requested.

Other changes will go into effect in August, including rate increase evaluations based on a person's credit rating.

You may have already received information about these changes from your credit card company. If not, keep an eye on the mail.

If you have not been using your credit card lately, you may also receive notice of closing of the account or of additional fees.