New Credit Card Rules take effect on 22nd February 2010

In the modern age, we can’t really imagine ourselves without a Credit or a Debit Card! But now, A long list of new rules will change how your credit card account is handled. The New Credit Card Rules apply from today [22nd February 2010] You may just go through a short summary from Federal Reserve.

Let me tell you that this version of Law updates are supposed to be most consumer-protective in the history of credit cards Laws. Even if they are pretty tough to understand, the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) has some notable changes, which are listed as below:

* Credit card companies must give 45 days notice before changing terms, including raising interest rates.
* Issuers must apply payments to balances with the highest interest rate first.
* Double-cycle billing is no longer allowed.
* Payment due dates must be the same every month.
* Issuers cannot raise the interest rate on existing balances.
* Customers must opt in to over-limit fees.
* Credit card companies cannot charge extra fees for paying your credit card bill.
* Minors will not be able to own their own credit cards.

Even after this Law Update, I don’t think it will have a fall in the number of Credit Card users. The only thing that may happen is the rise in the Debit Card users. I feel that this Credit CARD Act may somehow help in proper management but not without having a lot of restrictions on the Customers.

  • Arafat Hossain Piyada

    I yet not have a CC, actually I don’t understand its uses and payment process. However, I’m planning to get one soon, so this reading will definitely help me in future.

  • sudharsan @ technoskillonline

    I don’t have credit cards..
    But the regulation that u have given is very useful for credit card users

  • Agent Deepak

    I am yet to get a CC. I have asked many banks and most have denied me a CC. They say they do not give CC to students.

    What the Hell? In US, UK etc. Students get CC too. Man I want one. Its easier to pay by CC. I do have a Debit Card but it got blocked.

    Do you have any idea how I can get a CC?

    About the new rules, it is not going to affect anything.

    About last point. Never heard of a minor owning a CC. Does that happen?

  • Rohit Sane

    @Deepak: Minors can get a Credit card if they have a second name of a Major in their Account! But I think, it wont be possible now!

  • Sandeep Singh

    well a nice info for all the credit card holders !! i am planning to get one soon . !! so its of help !!

  • King Sidharth

    @Deepak: These are Federal Reserve Regulations, not Indian! So you can get a credit card. If you earn, you can show your bank statement and tell them that you are slef-employed and a student. They need to be sure that you can pay back.


  • New Jersey movers

    Good call on the ‘minors cannot own credit cards’ rule. People in college do not need their own cards.

  • TechChunks

    I’m yet to get a CC and probably will never get one. :D

  • Eric

    I have to agree with the minors getting to own no credit card.

    I was talking with my uncle the other day and simply told him that if I ever hear of someone younger than I am wanting a credit card I’ll just say, “get a debit card and be foolish with it a few times. Seriously. Go in the hole with it a few times and then come back and tell me you want a credit card.”

    If they can then they’re not too bright in my opinion and if they can’t, there’s something there.