The credit card act of 2009 is changing the rules for credit card companies. Most of the changes will not go into effect until February 22, 2010. While most of these changes will not make a big difference for consumers it still important to know your rights. Small business credit cards are not affected by this act. Below is a summary of what stood out to me. You can read the entire 33 page document here: Credit Card Act

Increasing your credit limit

Credit issuers must consider your ability to repay debt. It will be determined by your current balance vs credit limit and if you have been making minimum monthly payments.

45 Days notice

Credit card issuers will now have to give users at least 45 days notice of any changes in terms, fees or interest rates to their account. Users must also be made aware that they can cancel their account without having to immediately pay off their balance.

Payoff Information

Credit card issuers are required to tell card holders how long it will take to pay off their card if they pay the minimum balance. They will also have to list how much interest they will have paid over that time. Additionally, they must show what the user would have to pay each month if they wanted to pay off their balance in 36 months.

Penalty Interest Rates

Issuers must say if interest rates will increase when payments are missed or late.

The right to opt out

This is a big one in my opinion. Before February 22, 2010 it was up to the card issuers discretion if a card holder could opt out of changes to their account. With this new act in place, card holders can opt out. Opting out means that they will not be able to make any new purchases with their card but their balance will remain and they will continue making payments on that card. All of the terms, fees and interest rates will remain the same going forward.