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President Obama recently signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009. Most of this new legislation will begin February 22, 2010.

Some of the highlights of the Bill are:

Interest rate increase protection-
Unless the payment on your account is over 60 days late, an interest rate can no longer be raised. If you are late in paying and the rate is raised, after 6 consecutive on time payments, the increased rate will have to be restored to its previous rate. The interest rate cannot be increased within the first year (12 months) however and the promotional rates have to last for a minimum of 6 months.

Advanced notice of term changes-
The credit card companies now have to let cardholders know at least 45 days in advance if any significant changes (changes to benefits, rewards programs, rates, etc.) will take place to their card.

Limiting credit card use of young adults-
Credit cards will now be banned for people under the age of 21 unless there is an adult co-signer, or good proof that they have the appropriate funds and means to pay off the debt incurred. Also, once a card is obtained by a young adult (under 21), college students will be required to get permission from parents or guardians in order to increase the limits on the joint accounts held by them.

Hidden fees on gift cards-
Gift cards will now be required to stay activated for at least 5 years once activated initially. No longer will dormancy fees be implemented, unless there has been no activity within a 12 month period. If the company does have a dormancy fee though, it must be clearly disclosed to the buyers of the gift cards.

Notification of bill and payment processing-
Credit card companies must have the bills sent out at least 21 days (3 weeks) before the payment is due. If the payment is received by 5 p.m. on the date that it is due, it must be deemed on-time.

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