The law’s provisions include:

Legal Maximum Minimums

The law allows merchants to establish their own minimum purchase levels for accepting credit cards–up to a $10 maximum level regulated by the Federal Reserve. Before the legislation was signed, merchants technically broke the law in setting a $10 minimum credit card purchase. Now they can do so legally, so consumers beware.

Service Fee Ceilings

Under the reform law, the Federal Reserve may set limits on service transaction fees. The rule applies only to lenders with over $10 billion in assets, but the fallout may influence credit unions and smaller lenders as they search for other ways to charge customers. Keep your eyes peeled: many banks may respond to the law by removing or downsizing rewards and cash back rebates.

Protecting the Consumer

The new law creates a Consumer Financial Protection Bureau (CFPB), run under the auspices of the Federal Reserve in an effort to monitor and shut down lenders who may be rushing headlong toward conditions requiring yet another taxpayer bailout.

Retailers Recover Cash Discounts

Before the legislation, industry risk factors were evaluated by banks, enabling lenders to hit merchants with transaction fees that could swell to five percent. Now merchants may choose to offer cash rebates or volume discounts to stimulate sales. For example, think of the long-held practice of setting cash-or-credit card prices at the gas pump.

Only time will tell how lenders choose to recover profits after losing the right to continue some of their reckless practices. Look carefully at your credit card transactions and terms of use. Perks are bound to change.

---
Related Articles at Credit Card Addict:

» What Your Credit Card Won’t Let You Buy
» Borrowing on the Decline, Consumers Turning Away from Credit Cards?
» Senate Passes Credit Card Legislation
» Citi Rate Change Clarification
» Cash Captivates Credit Card Companies and Customers
» Visa’s Initial Public Offering (IPO)
» Credit Card Penalty Rates Headed Higher
» Credit Card Rental Car Insurance

Payment Allocation. Previously, credit agencies could assign your monthly payment to lower interest charges and leave higher interest purchases to gain interest. The new law changes that, so that the highest interest charges are paid on first. Thus balances can be paid off faster.

Changes to Agreement. Before the CARD Act, changes to your credit card agreement could occur even retroactively. The new law requires advance notice of 45 days for all changes except: rate changes due to the index for variable rate cards, expiring introductory rates, and not paying a workout payment as agreed.

Over the Limit Fees. The law prior to the Act of 2009 allowed an extra fee on each transaction over your limit, and you were not notified if you were over. The new law does not allow a transaction to occur if you are over your balance unless you opt in for this action. WARNING! Be on the lookout for this option in a disguised fashion in your mailbox.

Age Restrictions. As most know. getting a credit card was super easy for the 18-21 age group, and this was causing major problems, especially for college students. With the new law, if someone under 21 can prove that they have a job and can make payments on a credit card, the requirement for a co-signer will be waived. Otherwise, a co-signor will be required. WARNING! If you co-sign for anyone, you become liable for any unpaid amount.

There are additional — yet less traumatic — stipulations within the new law as well. For example, statements have to be mailed at least 21 days in advance of due date and no additional fees may not be assessed for payment via mail/phone/transfer etc. Free offerings to college students cannot occur within 1000 feet of a credit card issuer. Similarly, part of the statement must include how long it will take to pay off a credit card if only minimum payment is paid.

Responsible credit use remains paramount. But these first-ever credit card reforms go a long way to assisting smart and proper credit card use.

---
Related Articles at Credit Card Addict:

» Real-World Performance of the Chase Freedom Rewards Card
» Sovereign Bank Signup Bonus + Credit Card Rewards
» American Express Paying Customers to Close Their Accounts
» Citibank Change in Cardholder Terms, Rate Increase, and Opt-Out Notice
» The Three Best Cash Back Credit Cards
» Credit Card Issuers Cracking Down on App-O-Ramas
» Limitations on the Acceptance of Credit Cards
» American Express Change in Cardmember Terms, Rate Increases

Under the points-based program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards, with no earnings caps or expiration dates. Points can be redeemed for travel, cash, statement credits or gift cards, generally on a one-for-one basis with each point worth one penny. Users can also redeem points for merchandise, although the redemption rate is slightly less than one percent.

---
Related Articles at Credit Card Addict:

» Clear skies ahead for travelers with Southwest Airlines Rapid Rewards credit card from Chase
» Chase Freedom Cash Rewards Card Travel Promotion
» Free $10 Bonus From Chase Freedom Card
» Ask Chase to Block Over-the-Limit Charges
» Blue from American Express: 0% Interest on Purchases for 15 Months
» Chase to Refund New Monthly Service Charges
» Disney Rewards Visa – What’s the Deal?
» Chase Blink Transaction $10 Bonus Followup

Full details from FCN: Credit Card Reform: The CARD Act of 2009

---
Related Articles at Credit Card Addict:

» Credit Card Holders’ Bill of Rights Passes House
» Outlawing Retroactive Interest Rate Changes
» House Passes the Credit Card Bill of Rights
» Credit Card Companies Likely to Change Policies in Response to Finance Reform
» Should You Co-sign for a Credit Card with Your Teen?
» Credit Card Bill of Rights
» Loophole in the Credit Card ACT Can Actually Extend Your Debt
» Privacy Policy

As a sidenote, many of the proposed regulations overlap with new rules put forth by the Federal Reserve. Unfortunately, the Fed’s rules won’t kick in until July 2010, whereas the new legislation could be in place within a few months.

---
Related Articles at Credit Card Addict:

» Senate Passes Credit Card Legislation
» House Passes the Credit Card Bill of Rights
» Credit Card Bill of Rights
» Rewards cards: Consumers Love ‘Em, Retailers Don’t
» 0% Balance Transfer Offers Updated
» Carnivals – Week of 04/21/08
» American Express Membership Rewards Points Can Now Pay Down Federal Taxes
» Beware of Bogus Credit Card Charges

So… In case you still needed to be convinced, this is a great example of why you should opt out of credit card offers. If nothing else, just think about how much waste you’d be saving.

Source: Chicago Tribune

---
Related Articles at Credit Card Addict:

» Opting Out of Credit Card Offers
» The Best Credit Card Offers for Good Credit
» Credit Card Issuers Sweeten Offers
» No Fee 0% Balance Transfer Offers From Pulaski Bank
» Hack Your Credit Card Signup Bonus
» No Fee Balance Transfers From IberiaBank
» No Fee 0% Balance Transfer Credit Card Offers
» Citi Diamond Preferred Rewards Signup Bonus

Well, according to Matthew…

The non-5% rewards will be dropping to 1.25% instead of 1.5% after $6500 in annual spending. In addition, purchases over $400 at gas stations (how would you get that high? I guess if you’re a trucker…) will no longer be classified as “Everyday” purchases. The last major rewards change was that it now specifically states the purchases must be made for personal consumption.

This information was apparently sent out with April card statements. I’ve since checked the application page for this card, and it seems that Matthew’s information is correct. The lower reward level after you reach $6500 in spending will indeed be 1.25%, and mega-purchases at gas stations (the $400 limit appears to be per transaction) will no longer qualify for 5% cash back.

While this might not strike you as a huge change, the drop from 1.5% to 1.25% represents a 17% decrease. Thus, while it’s still a good card, it’s not quite as good as it used to be.

*Note: Prior to hitting the $6500 spending level, this card pays 1% rewards on “Everyday” purchases and 0.5% rewards on everything else.

---
Related Articles at Credit Card Addict:

» American Express Increased Our Credit Limit
» American Express Offering Double Membership Rewards Points
» Get a 20% Cash Back Bonus From Citi
» The Three Best Cash Back Credit Cards
» AmEx Simply Cash Scales Back Gas Rebate, Blue Cash Still Offering 5% Rewards
» The Three Best Credit Cards
» Amex $20 Cash Back for Shopping at Walmart
» Blue from American Express: 0% Interest on Purchases for 15 Months

Here are the 2010 federal income tax rates.

---
Related Articles at Credit Card Addict:

» Chase Increases Credit Card Rates and Adds New Fees
» American Express Membership Rewards Points Can Now Pay Down Federal Taxes
» How to Evaluate Balance Transfer Credit Card Offers
» eBay Moving to Electronic Payments Only
» Loophole in the Credit Card ACT Can Actually Extend Your Debt
» The Death of No Fee 0% Balance Transfer Credit Card Offers?
» Will microchip-embedded cards replace the old magnetic stripe swipe?
» Using 0% Balance Transfers to Dig Yourself Out of Debt

“Starting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory.”

According to notices that cardholders have been receiving, it looks like the sub-10% rates will be jumping to just shy of 14% (possibly higher, I can only go on what’s been reported thus far).

Presumably you’ll be able to opt out of these changes, but that will likely involve agreeing to close your account. Rock, meet hard place.

Source: Yahoo! Finance

---
Related Articles at Credit Card Addict:

» Watch Out for Surprise Credit Card Rate Increases
» Citibank Rate Increases: Be Sure to Opt Out
» Chase Abandons “Anti-Consumer” Interest Rate Policy
» Chase Increases Credit Card Rates and Adds New Fees
» Credit Card Penalty Rates Headed Higher
» Credit Card Bill of Rights
» Outlawing Retroactive Interest Rate Changes
» AmEx Credit Line Increases: Only One Per Six Months

While the Federal Reserve will ultimately require that issuers give cardholders 45 days notice before reducing a credit line to the point at which it would trigger penalties, these restrictions won’t go into effect until the summer of 2010. Your best defense is thus to keep a close eye on your accounts, and to call your creditor and ask for any unfair fees to be reversed.

Via: The Consumerist

---
Related Articles at Credit Card Addict:

» Reduced Credit Card Limits Hurting Credit Scores
» Tightening Consumer Credit Standards
» Surviving the Economic Crisis With Your Credit Intact
» Credit Card Issuers are Closing Unused Accounts
» American Express Change in Cardmember Terms, Rate Increases
» American Express Using Behavioral Analysis to Reduce Limits?
» American Express Re-Structures, Requests Bailout Money
» Amex Preferred Rewards Gold Card $100 Signup Bonus