We're wrapping up our week long series on the Credit CARD Act.  For those of you just joining us, we've been gearing up for the final changes that are scheduled to go into effect on Aug. 22.

So far we've covered all of the major provisions that have gone into effect to date, including what you need to know about interest rates and account changes, fee restrictions, student protections, and enhanced consumer disclosures.

The final section of the Act relates to how your payments are allocated, statement mailing requirements, and billing cycle changes.  Here's what you need to know:

• Credit card issuers are required to mail your statement at least 21 days before your payment is due and your monthly due date must be the same date each month.


• Double-cycle billing, or the practice of calculating interest charges on both the current balance and the previous month's balance, is prohibited.


• Any payment over the minimum balance due must automatically be applied to the highest interest balance first.

What you need to know: Before a credit card issuer can open a new account, they must first take into account your ability to repay. A card issuer cannot open a new credit card account, or increase an existing credit limit, unless they first consider your ability to make the required payments under the terms on the account.

There's no question that the CARD Act is a great step forward for consumer protection, but we have one final phase left to go. The remaining provisions will go into effect on August 22, 2010, and include the final rules that limit fees on gift cards and also gives consumers the right to earn back their previous interest rate if they are able to make continuous on time payments for 6 months.  Join us on Monday, where we'll review the final provisions and wrap up the final chapter in this series.

All week long we've been reviewing the major provisions under the Credit CARD Act and what they mean for you.  So far we've covered the new laws governing interest rates and account changes, fee restrictions, and student credit card protections. Next on the list we're covering the new consumer disclosure rules.

Not only does this section of the law help provide a much-needed level of transparency in regards to the time it takes to pay off credit card debt, it also put an end to one of the most popular (and annoying) marketing campaigns of all time.  You know the one, featuring a group deadbeat 20-somethings living in their parents basement and singing a tune? Yep, thanks to enhanced consumer disclosures, those deadbeat 20-somethings are looking for a new gig.  Here's what the enhanced consumer disclosures mean for you:

• Your credit card statements must now include a minimum payment disclosure that explains how long it will take you to pay off your existing balance as well as the total cost in interest if you only pay the minimum amount due each month. Additionally, your statement must include the monthly payment required, and interest cost, to pay off the existing balance in 3 years.


• Your credit card issuer must provide easy online access to the cardholder agreement for your account. Likewise, all credit card issuers are required to submit cardholder agreements to the Federal Reserve, which will act as the central repository. Find your credit card agreement with the Federal Reserve Consumer Credit Card Agreement Search tool.


• Companies that advertise "free" credit reports must disclose that the report being offered is NOT the free credit report provided under Federal law at AnnualCreditReport.com. (Read the FTC Amendment)

What you need to know: If your credit card issuer raises your interest rate, they must tell you why. This means if the increase is due to market conditions, increased credit risk due to credit scores, or a decline in credit worthiness – they must provide up to four the reasons for the increase. Under separate legislation, issuers will also be required to provide consumers with the credit score used in making that decision. The effective date for credit score disclosures has not yet been determined.

How do you feel about the new payment disclosures? Were you surprised by how long it would take to pay off the balance by only making the minimum payment? Do you think the 3 year payment disclosure is helpful? We want to hear what you have to say.  Share your thoughts in the comments section below.

Join us tomorrow as we wrap up our week long series on the Credit CARD Act and prepare for the new laws that go into effect on Aug. 22 - just a few days away.

You're tuning in to our week long series on what the Credit Card Accountability, Responsibility and Disclosure (CARD) Act means for you, the consumer.  Yesterday, we covered how the CARD Act aims to curb excessive fees charged by credit card issuers.

Today, in the third installment of this series, we talk about the protections for students – or those consumers under the age of 21. 

This one carries mixed implications.  On one hand, it does a great job at protecting students from predatory credit card practices. On the other, many feel that it does little to address the lack of financial education needed to teach college students real life financial management skills. The argument is that without the additional financial education requirements, are 21-year-olds really any more prepared to make smarter financial decisions than they were at 18? 

We'll let you be the judge.  Here's what you need to know:

• Credit card issuers must verify proof of income or otherwise require a co-signer before issuing a credit card to consumers under the age of 21.


• Credit card issuers cannot send prescreened card offers to those under 21 unless they have consented to receive such offers.


• Card issuers cannot raise the credit limit on an account for persons under 21 with a co-signer, without written permission from the co-signer.


• Credit card issuers are prohibited from providing free items in exchange for applications when marketing to students on or near campus. The days of "credit card swag" (free t-shirts, frisbees), in exchange for credit card applications are over. Rewards programs offered with credit cards are still allowed, however.

What you need to know: While the new rules were designed to protect young consumers, they neglect one very important component – financial literacy requirements to teach college students about credit card and personal finance management. Without financial literacy requirements, 21-year-olds will be no more prepared to manage their credit cards than they were at 18.

Do you feel the student protections go far enough? Or do they do exactly what they should?  Share your thoughts in the comments section below.

Join us tomorrow for the fourth installment of our week long series on the Credit CARD Act, in which we cover the new rules for enhanced consumer disclosures.

You're tuning in to our week long series on what the Credit Card Accountability, Responsibility and Disclosure (CARD) Act means for you, the consumer.  Yesterday, we covered how the CARD Act aims to curb excessive fees charged by credit card issuers.

Today, in the third installment of this series, we talk about the protections for students – or those consumers under the age of 21. 

This one carries mixed implications.  On one hand, it does a great job at protecting students from predatory credit card practices. On the other, many feel that it does little to address the lack of financial education needed to teach college students real life financial management skills. The argument is that without the additional financial education requirements, are 21-year-olds really any more prepared to make smarter financial decisions than they were at 18? 

We'll let you be the judge.  Here's what you need to know:

• Credit card issuers must verify proof of income or otherwise require a co-signer before issuing a credit card to consumers under the age of 21.


• Credit card issuers cannot send prescreened card offers to those under 21 unless they have consented to receive such offers.


• Card issuers cannot raise the credit limit on an account for persons under 21 with a co-signer, without written permission from the co-signer.


• Credit card issuers are prohibited from providing free items in exchange for applications when marketing to students on or near campus. The days of "credit card swag" (free t-shirts, frisbees), in exchange for credit card applications are over. Rewards programs offered with credit cards are still allowed, however.

What you need to know: While the new rules were designed to protect young consumers, they neglect one very important component – financial literacy requirements to teach college students about credit card and personal finance management. Without financial literacy requirements, 21-year-olds will be no more prepared to manage their credit cards than they were at 18.

Do you feel the student protections go far enough? Or do they do exactly what they should?  Share your thoughts in the comments section below.

Join us tomorrow for the fourth installment of our week long series on the Credit CARD Act, in which we cover the new rules for payment allocations and billing cycles.

We're continuing our week long series on the provisions of the Credit CARD Act. Yesterday, we reviewed the new laws that protect you from arbitrary, any time, any reason interest rate increases and account changes.  If you missed it, be sure to go back and check it out. 

Another major protection under the new rules make headway in curbing the excessive fees charged by credit card issuers.  Remember the days of over-limit fees?  Not any longer.  Here's what you need to know:

Fee Restrictions Under the Credit CARD Act:

• Credit card issuers cannot charge you an over-limit fee unless you consent to allowing over-limit transactions prior to the fees being charged. If you agree to accept over-limit transactions, only one over-limit fee per billing cycle is permitted.


• Card issuers may not charge additional fees for accepting payments by mail, phone or online – however, they can charge a fee to expedite a payment.


• If your due date falls on a weekend or holiday when payments are not accepted, your issuer cannot charge you a late fee if your payment arrives the next business day. In addition, payments made at a local office or branch must be credited the same day.


• "Fee harvester" or sub-prime credit card non-penalty fees cannot exceed more than 25% of the credit limit when you open the account.


• Your credit card issuer cannot charge a fee of more than $25 unless you were late with a payment in the last six months (in which case you may be charged up to $35); or the credit card issuer proves that the costs incurred as a result of your late payments justify a higher fee.


• Credit card issuers cannot charge you a late fee greater than your minimum payment. Beginning August 22, 2010


• Credit card issuers cannot charge you an inactivity fee for not using your card, including fees for not charging a certain amount each month. Beginning August 22, 2010

What you need to know: The provisions haven’t stopped credit card issuers from creating new fees or increasing existing fees on cash advances or balance transfers. The fact is, credit card issuers have taken a big hit in their proverbial wallets and they’re coming up with creative new ways to make up for the revenue they’ve lost under the new provisions.

These new rules go to great lengths to put an end to excessive fees charged by credit card issuers, but does it do enough? Have you seen any new fees? We want to hear what you have to say. Share your thoughts in the comments section below.

Check back tomorrow for the next installment of our Credit CARD Act series where we'll fill you in on the new credit card protections for students under the age of 21.