Last week, the Federal Reserve issued new rules regulating credit cards that go into effect February 22, 2010.  These consumer protective rules will affect credit card companies and consumers alike.  The new rules include the following provisions:

• Credit card companies must give 45 days' notice prior to any increase in or change to (a) a cardholder's interest rate, (b) certain fees associated with a credit card, or (c) a card's basic terms;
• Interest rates may not increase for the first year after a cardholder opens an account;
• Card issuers will not be allowed to establish minimum interest rates;
• Credit card fees may not exceed 25% of a cardholder's credit limit; however, this does not apply to penalty fees;
• Credit card companies may not automatically enroll cardholders in programs that charge regular fees for exceeding one's credit limit;
• Monthly statements must indicate how long it will take a cardholder to pay off his or her balance while making only minimum payments;
• A card issuer must deliver a credit card bill to a cardholder at least 21 days prior to payment being due; and
• Credit card issuers may only charge interest on balances in a cardholder's current billing cycle.

For more information, please read the Federal Reserve's new credit card rules summary.

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