Tracy Davidson

After years of rate hikes, costly fees and credit limit cuts, consumers finally got some relief, thanks to the Credit CARD Act. As you may know, a number of the rules kicked into effect earlier this year, but there are several new ones rolling out this summer that you’ll want to be aware of.

To highlight a few of the big changes that have already taken effect:

• If your credit card company plans to increase your rate or fees, it must give you 45 days notice and give you the option to cancel before the change takes place.
• Your credit card company has to mail or deliver your bill at least 21 days before your payment is due.
• Your payment due date must be the same each month and the payment cut-off time cannot be earlier than 5 p.m. on that particular day.
• Your statement must show how long it will take to pay off your balance if you make only the minimum payment.

For an easy-to-digest list of rule changes, check out federalreserve.gov.

Here’s a look at the new rules:

Effective July 1

• Banks will no longer let you spend more money with your debit card, or withdraw more at the ATM, than you have in your account UNLESS you’ve given them permission to do so. If you do give them permission, they can only charge you one overdraft fee per billing cycle.

Effective August 22

• Every six months, issuers are required to review all accounts that have been subject to rate hikes to determine if a reduction is warranted.
• Gift Cards must be valid for 5 years and dormancy fees are banned for the first year.

Do beware though, credit card companies are finding ways to make up for lost revenue—experts say issuers will likely raise annual and inactivity fees to bridge the gap. If you’re hanging on to a card to take advantage of its rewards program—do some number crunching. Hefty rewards programs used to offset annual fees, but issuers are cutting back on their programs, so make sure to reevaluate your situation. One last tip- be cautious of introductory offers like “0%” interest or discount offers- after the period is over your rate will spike—and the required 45 day notice does not apply. Bottom line, read the fine print when considering offers and make sure to read ALL mail that you receive from your credit card company—you’ll thank yourself later!

To stay in the know, check out the newly launched government site MyMoney.gov- it’s a one-stop shop  with all kinds of helpful resources, tools, and information to help you best manage your finances.

By: Erinn Carey