The new Credit CARD Act which went into effect in February will protect card holders in a number of ways, one of those being statements including more details. Other items included in this Act include the inability of companies to increase rates, as well as the ages at which consumers can obtain cards.


One vital part of the Act is that credit card statements must now include more information. The new statements are required to show how long it would take the card holder to pay off their card if they made the minimum payment from the date of the statement forward. This will help put the amount of debt one has accumulated into prospective.

In addition to the new statements, credit card companies will no longer be allowed to increase rates under the new Act. The interest rate which stands when the card is opened must remain the same for the first year unless a special circumstance exists and the card holder is notified prior to the increase.

On top of these 2 changes, credit card companies are no longer allowed to advertise on college campuses and persons under 21 can no longer obtain a card without a valid cosigner. All of these changes took effect at the end of February and have been put into place to protect card holders and help them get out of debt.

Author: Sylvia Wayne