A new bill will require credit card companies to provide additional benefits to their customers. Companies must post their agreements on the Internet and let customers pay their bills online or by phone for free.  Interest rates can not be raised until the customer is more than 60 days behind on payments, and the company must give 45 days notice. Once the minimum balance is paid, the lower rate must be restored within six months. Companies would have nine months to put these measures into effect. (Source: AP, Credit Card Requirements, May 19, 2009)

What It Means to You

The  Federal Reserve also approved laws to protect consumers from rising credit card charges and fees, but the regulations won't go into effect until July 2010. The Fed will prevent banks from raising interest rates on existing balances unless the customer is at least 30 days late in paying the minimum, eliminate double-cycle billing, and ensure banks apply payments to the portion of debt with the highest interest rate.  (Source: Bloomberg, Credit Card Users Feel Pain as Bank Reap Gain, December 18, 2008)

Best Moves Now

• Credit Card Holders Bill of Rights
• How to Negotiate a Lower Credit Card Rate
• Surviving a Credit Crunch