Credit Card Rules To Change In February

By Dan Bewley, The News On 6

TULSA, OK -- Credit card changes are about to go into effect.

New legislation begins in February that gives people more control over their accounts.

Credit cards are a popular choice of payment during the holidays.

The National Retail Federation reports 36% of shoppers will mostly use credit cards for their Christmas gifts.

Coming up in February those shoppers may get a gift of their own when the new Credit Card Accountability, Responsibility, and Disclosure Act goes into effect.

The law is designed to help consumers manage their credit card accounts and a letter explaining the new rules should be arriving soon in the mail.

Among those new rules, credit card companies will not be able to increase your interest rate unless your payment is 60 days behind.

You'll now get 45 days notice when the rate is changed instead of the previous 14 days.

Any excess payment over the minimum will now go to balance with the highest percentage rate and the law eliminates what's called 'universal default'.

Rick Brinkley of the Better Business Bureau said, "It used to be that if you faulted on one credit card the other credit cards could jack up your interest rate as a result of it. Now the credit card company can only affect your interest rate based on what their experience is with you."

But with the good news of increased accountability Rick Brinkley reminds it doesn't take place for another month and a half and warns that's plenty of time for credit card companies to change your interest rate.

"It's very important for consumers right now to start looking at their credit card bills each month to see whether the interest rates have been increased," Brinkley said.

Brinkley calls it a good law but just hopes credit card companies don't try to sneak a high interest rate past consumers before it goes into effect.