New Plastic Protection

By Claire Poole Tuesday June 09, 2009
The new Credit Card Act of 2009 is meant to protect you from the various tactics credit card companies use to separate you from your money.

• They have to give 45 days' notice of a rate hike;
• They can't impose increases in the first year of a new account; and
• Promotional rates have to last at least six months.

The law also restricts interest-rate increases on old balances, and limits fees and penalty interest.

Unfortunately, the Act doesn't resolve everything. Beware: You won't get advanced warning of a rate increase if it's based on a variable rate, such as the prime rate. And much to our dismay, the law didn't impose an interest-rate ceiling. Now might be a good time to start weaning yourself off the little buggers and become a cash-only woman.

Interested in learning more about credit card reform? Check out CreditCardRreform.org, a website sponsored by the Consumers Union -- an independent, nonprofit testing and information organization serving only consumers.