New credit card rules being phased in this week on clarkhoward.com

Several provisions of the new credit card rules begin going into effect later this week, according to The Washington Post.

First, banks will now be required to give you 45 days of notice when changing the terms and conditions of your card. The 15-day rule is history.

The great thing is this gives you the time to make a choice. You will have the option to reject proposed changes in terms -- usually an interest rate hike -- and pay off your outstanding balance under its original terms. Of course, doing so revokes your future charging privileges.

Second, banks will be required to give you 21 days to pay your bill from the date it is mailed. No more bills showing up just before they're due -- even though you were previously supposed to be given at least 14 days.

Additional consumer protections will go into effect next year. But nothing protects you like not owing on a credit card. When you owe, you're at the mercy of the giant monster mega-banks.

The goal you need work toward is being credit card debt free.

What others are saying

high interest rates
what do you do when 13 cards have gone
from 2.9%-7.9% to 29.9% and paymentsfrom
300.00 to 7000.00?
By Barbara @ 11/01/09 07:31:36 PMreport abuse
America Express Rate Change
It really s amazing. AMEX dated their rate increase letter August 6 to all customers which allowed them to completely avoid the new law which went into effect on August 20th.
By Mark @ 09/15/09 04:56:42 PMreport abuse
Credit Card Rules
I'm a veteran who is also a new member of the Pentagon Federal Credit Union w/ both a VISA and a new car loan (3.99%.
If you like rebate credit cards check this out. Hint: "A concerned citizen" is elegible for a token fee.
By Retired: Age 66 @ 09/07/09 06:53:24 PMreport abuse
AmEx changes my terms too! No option to opt out?
AmEx just sent notices to change my fixed rate to a variable rate....I called and was given NO choice to opt out, so I'm stuck with variable rates until they are paid off!
By Kevin @ 08/31/09 03:46:51 PMreport abuse
credit card settlement
what do I say to the credid card company in regards to making an offer of settlement with a credit card company? do I need to send a letter or call them or both
By carol colwell @ 08/31/09 10:52:45 AMreport abuse
I Agree with Get Real
I agree with GetReal's post. Credit flows too freely in this country, and when you have more irresponsible people using credit than responsible people, you end up like we are now - swimming in debt that people want everyone ELSE to pay for. Even the banks have made a living selling that debt to others. It's a total shame.
By OwnUp @ 08/26/09 07:05:29 PMreport abuse
I HAVE CHASE, USAA, CITIBANK....
I do not care what rate it, nor do I ever shift balances..I use it, and pay when I get the bill in the mail. Period. Never a finance charge. I make Chase payments at out local Chase branch.
By CONSUMER WARRIOR @ 08/25/09 03:25:15 PMreport abuse
Get Real
No matter what Congress does it still won't be enough for those who can't stay within a budget. Take some responsibility for your own actions. Credit card debt is the stupidest thing you can get yourself into in the first place. Stop complaining and stop spending money you don't have. And, stop expecting Congress to bail you out of your own stupidity. Go buy yourselt a scissors and cut up that credit card if you can't use it responsibly.
By Is Anyone Sane? @ 08/25/09 12:58:14 AMreport abuse
CREDIT CARDS
I THINK THAT THE CREDIT CARD RATES OF INTEREST ARE TOO HIGH NOW..AND THAT SHOULD BE THE NEXT THING ADDRESS BY OUR CONGRESS...WE GET THE BILL THE BILL IS 2000..THE MINIMUM PAYMENT IS 65...WE PAY IT AND ONLY TWENTY GOES TOWARD THE PAYMENT..AND THE OTHER 45.OO GOES FOR INTEREST CHARGES...I WAS NEVER NOTIFIED WHEN THE CREDIT CARD PERSONS..LOWERED MY LIMIT..THUS PUTTING A DING IN MY CREDIT..EVEN THO I PAID FIVE TIMES THE MINIMUM AND NEVER USED THE WHOLE TOTAL ALLOWED..AND THEY WERE HOLDING MY PAYMENTS BECAUSE THEY WERE CHECKS NOT CASH..CHECK OUT YOUR WAL-MART OR SAM'S CARD....THEY NEED A TIGHTER LEASH..TO KEEP THEM FROM PUTTING THIER HANDS IN OUR WALLETS...AND NEVER LETTING GO...
By EBO @ 08/24/09 08:15:43 PMreport abuse
credit card ??
I would like to see the stores go back to lay away.Sure would cut out a lot of hassel.you get it when its paid in full.It would save all of us money ,the stores and the buyers too. Only sue them in case of emergencys.
By gayle walther @ 08/24/09 08:05:35 PMreport abuse
Usury limits
See very exciting international campaign to place usury limits

http://www.youtube.com/watch?v=gojw4vE366g
By Kohar @ 08/24/09 03:27:53 PMreport abuse
Credit card rates
I agree with the previous poster, and would add this: let's restore laws against usury. For heaven's sake, what century are we living in? Enough tribute paid by Congress to the bad guys. Establish reasonable interest rates and make usury the crime it is. We could all do our part by not participating, too!
By Bob @ 08/24/09 11:43:30 AMreport abuse
Minimum payment increase
Some experts claim Chase is helping by raising minimum payments, but in fact they are selectively welshing on deals they made but now regret. Of 2 Chase cards - one with a low rate until the transferred balance is paid, one until a specified date, they only raised the payment on the low rate until paid. Fortunately, I will be able to pay off the one with the low rate cutoff date - then will just keep making their new minimum payment until that one is gone too. I also plan to contact companies like BP, who have their cards issued by Chase, and ask them to find a more user-friendly card issuer. Hope others do the same.
By A Chase Victim @ 08/21/09 08:58:25 AMreport abuse
big deal
So now the credit card companies have 45 days to nail you. Big deal. Just some fluff so the administration can say they are doing something. Why not limit the increase?
By steve @ 08/20/09 08:15:45 AMreport abuse
what to do
Is there anything we can do? Our rates were raised months ago, making it impossible to pay them back.

Also, when using a debit card, we don't use the PIN, we run it as a credit card. Is this safer?
By EM @ 08/20/09 06:07:26 AMreport abuse
Sears/Citi
Sears just raised my rate to 25%. I don't even carry a balance. I pay it off monthly. I will not be buying any large appliances from them.
By Besiggers @ 08/19/09 11:48:57 PMreport abuse
Citi / sears
i just received a letter from Sears about Notice of Change of terms!Going into effect Sept 2. Now intrest Rate 25.24..WOW was 20.9
By ron skinner @ 08/19/09 09:49:17 PMreport abuse
re: debit card vs. credit card
You run a huge risk putting holds for hotels rooms and rental cars on your visa check/debit card.. One- they can put big temp charges on that can cause you to overdraft, even if not going to use that card top pay in the end. You can get charged for expenses or damage that you may not agree with, but which can overdraw you anyways, and you have much less ability to contest charges. Much better to use a good, preferably platinum, credit card (and pay it off quickly of course)
By AKRBT @ 08/19/09 07:37:20 PMreport abuse
Chevron Fleet Business Credit Cards
Does the 21 days to pay apply to other credit grantors like Chevron and the jerks at Fleet who manage their business card accounts receivable? Everytime Chevron customer retention changes my due date to 21 days, fleet reconfigures my credit line and puts it back to 14 days. They are a real work of art these folks!
By Alan @ 08/19/09 07:19:42 PMreport abuse
Security
Although credit card security sucks, for all those that use debit cards thinking they are better are wrong. If someone gets that pin and empties your account...HAHAHA. If someone steals my credit card number, like they did last month, I'm not out any money. Not to mention I get cash back for using my credit card and paying it off monthly. What's that term credit card companies call me, a "deadbeat" or something. They aren't making money off me, only the merchants.
By Mike @ 08/19/09 07:13:41 PMreport abuse
Interest rate hike "opt-out".
I received a notice on AUg 6 from American Express that my fixed rate will be changed to a variable rate. This will increase my rate by whatever the Prime Rate happens to be. I wonder if I can opt out since the notification was dated 08/06/09.
I ALWAYS pay on time and more than minimum.
By Bill @ 08/19/09 06:19:58 PMreport abuse
Debit Card vs. Credit Card
Thanks very much...
By Charlie @ 08/19/09 06:00:58 PMreport abuse
RE: Debit Card vs. Credit Card
Yes, they accept debit cards with a visa logo.
By anonymous @ 08/19/09 05:42:32 PMreport abuse
Debit Card vs. Credit Card
Hello - Does anyone know if airlines, hotels or other places that require a credit card for reservations accept a Debit Card from my checking account with the Visa logo on it to hold the reservation? Thanks.
By Charlie @ 08/19/09 05:33:00 PMreport abuse
Chase Card Terminated
I have fallen victim to Chase cancelling my credit card although I obeyed all the rules by always paying on time and making more than the minimum due. Granted the balance owed vs. credit limit was close. However, like many, I was meeting my obligations. My question...is anyone aware of an existing credit card that people in my position have a reasonable chance of acquiring. I have been struck down by the major banks already due to too many inquiries etc. I am now without a credit card and need one for emergency's. Thank you.
By Chuck @ 08/19/09 05:24:58 PMreport abuse
Debit Card
Even better than not "owing" on a credit card is not owning one in the first place! I only use Debit Cards and Cash and have been doing so since 2004.
By Dave @ 08/19/09 02:14:33 PMreport abuse
Credit Cards
I have a friend who has a Chase credit card. Min montly payment is now 400+ for 10,000 of credit. In 25 months it would be paid if not for the interest. It is crazy to own a credit card.
By Bill @ 08/19/09 07:02:22 AMreport abuse
Just say no
Only an idiot would run an unpaid balance on a credit card. If you don't have the money to buy a necessity, go to the bank and borrow it. If it's not a necessity and you don't have the money, don't buy it. Americans have got to learn to live below their means. Not within their means, but ultimately below their means. That is the only way our nation can accumulate the capital to advance our economy. Without it, we will continue to slide toward third world status. Living below our means is healthy both for individual families and for the country as a whole.
By Buzz G @ 08/18/09 06:23:57 PMreport abuse
proof of the date
How does the customer prove the date that the bill was mailed? What is the customer's recourse if they were not given 21 days?
By edrebber @ 08/18/09 06:03:39 PMreport abuse
Lobbyists rule again
Just to reafirm that the lobbyists still run the country through our elected? legislators.
By Jim @ 08/18/09 05:24:10 PMreport abuse

high interest rates

what do you do when 13 cards have gone
from 2.9%-7.9% to 29.9% and paymentsfrom
300.00 to 7000.00?

By Barbara @ 11/01/09 07:31:36 PMreport abuse

America Express Rate Change

It really s amazing. AMEX dated their rate increase letter August 6 to all customers which allowed them to completely avoid the new law which went into effect on August 20th.

By Mark @ 09/15/09 04:56:42 PMreport abuse

Credit Card Rules

I'm a veteran who is also a new member of the Pentagon Federal Credit Union w/ both a VISA and a new car loan (3.99%.
If you like rebate credit cards check this out. Hint: "A concerned citizen" is elegible for a token fee.

By Retired: Age 66 @ 09/07/09 06:53:24 PMreport abuse

AmEx changes my terms too! No option to opt out?

AmEx just sent notices to change my fixed rate to a variable rate....I called and was given NO choice to opt out, so I'm stuck with variable rates until they are paid off!

By Kevin @ 08/31/09 03:46:51 PMreport abuse

credit card settlement

what do I say to the credid card company in regards to making an offer of settlement with a credit card company? do I need to send a letter or call them or both

By carol colwell @ 08/31/09 10:52:45 AMreport abuse

I Agree with Get Real

I agree with GetReal's post. Credit flows too freely in this country, and when you have more irresponsible people using credit than responsible people, you end up like we are now - swimming in debt that people want everyone ELSE to pay for. Even the banks have made a living selling that debt to others. It's a total shame.

By OwnUp @ 08/26/09 07:05:29 PMreport abuse

I HAVE CHASE, USAA, CITIBANK....

I do not care what rate it, nor do I ever shift balances..I use it, and pay when I get the bill in the mail. Period. Never a finance charge. I make Chase payments at out local Chase branch.

By CONSUMER WARRIOR @ 08/25/09 03:25:15 PMreport abuse

Get Real

No matter what Congress does it still won't be enough for those who can't stay within a budget. Take some responsibility for your own actions. Credit card debt is the stupidest thing you can get yourself into in the first place. Stop complaining and stop spending money you don't have. And, stop expecting Congress to bail you out of your own stupidity. Go buy yourselt a scissors and cut up that credit card if you can't use it responsibly.

By Is Anyone Sane? @ 08/25/09 12:58:14 AMreport abuse

CREDIT CARDS

I THINK THAT THE CREDIT CARD RATES OF INTEREST ARE TOO HIGH NOW..AND THAT SHOULD BE THE NEXT THING ADDRESS BY OUR CONGRESS...WE GET THE BILL THE BILL IS 2000..THE MINIMUM PAYMENT IS 65...WE PAY IT AND ONLY TWENTY GOES TOWARD THE PAYMENT..AND THE OTHER 45.OO GOES FOR INTEREST CHARGES...I WAS NEVER NOTIFIED WHEN THE CREDIT CARD PERSONS..LOWERED MY LIMIT..THUS PUTTING A DING IN MY CREDIT..EVEN THO I PAID FIVE TIMES THE MINIMUM AND NEVER USED THE WHOLE TOTAL ALLOWED..AND THEY WERE HOLDING MY PAYMENTS BECAUSE THEY WERE CHECKS NOT CASH..CHECK OUT YOUR WAL-MART OR SAM'S CARD....THEY NEED A TIGHTER LEASH..TO KEEP THEM FROM PUTTING THIER HANDS IN OUR WALLETS...AND NEVER LETTING GO...

By EBO @ 08/24/09 08:15:43 PMreport abuse

credit card ??

I would like to see the stores go back to lay away.Sure would cut out a lot of hassel.you get it when its paid in full.It would save all of us money ,the stores and the buyers too. Only sue them in case of emergencys.

By gayle walther @ 08/24/09 08:05:35 PMreport abuse

Usury limits

See very exciting international campaign to place usury limits

http://www.youtube.com/watch?v=gojw4vE366g

By Kohar @ 08/24/09 03:27:53 PMreport abuse

Credit card rates

I agree with the previous poster, and would add this: let's restore laws against usury. For heaven's sake, what century are we living in? Enough tribute paid by Congress to the bad guys. Establish reasonable interest rates and make usury the crime it is. We could all do our part by not participating, too!

By Bob @ 08/24/09 11:43:30 AMreport abuse

Minimum payment increase

Some experts claim Chase is helping by raising minimum payments, but in fact they are selectively welshing on deals they made but now regret. Of 2 Chase cards - one with a low rate until the transferred balance is paid, one until a specified date, they only raised the payment on the low rate until paid. Fortunately, I will be able to pay off the one with the low rate cutoff date - then will just keep making their new minimum payment until that one is gone too. I also plan to contact companies like BP, who have their cards issued by Chase, and ask them to find a more user-friendly card issuer. Hope others do the same.

By A Chase Victim @ 08/21/09 08:58:25 AMreport abuse

big deal

So now the credit card companies have 45 days to nail you. Big deal. Just some fluff so the administration can say they are doing something. Why not limit the increase?

By steve @ 08/20/09 08:15:45 AMreport abuse

what to do

Is there anything we can do? Our rates were raised months ago, making it impossible to pay them back.

Also, when using a debit card, we don't use the PIN, we run it as a credit card. Is this safer?

By EM @ 08/20/09 06:07:26 AMreport abuse

Sears/Citi

Sears just raised my rate to 25%. I don't even carry a balance. I pay it off monthly. I will not be buying any large appliances from them.

By Besiggers @ 08/19/09 11:48:57 PMreport abuse

Citi / sears

i just received a letter from Sears about Notice of Change of terms!Going into effect Sept 2. Now intrest Rate 25.24..WOW was 20.9

By ron skinner @ 08/19/09 09:49:17 PMreport abuse

re: debit card vs. credit card

You run a huge risk putting holds for hotels rooms and rental cars on your visa check/debit card.. One- they can put big temp charges on that can cause you to overdraft, even if not going to use that card top pay in the end. You can get charged for expenses or damage that you may not agree with, but which can overdraw you anyways, and you have much less ability to contest charges. Much better to use a good, preferably platinum, credit card (and pay it off quickly of course)

By AKRBT @ 08/19/09 07:37:20 PMreport abuse

Chevron Fleet Business Credit Cards

Does the 21 days to pay apply to other credit grantors like Chevron and the jerks at Fleet who manage their business card accounts receivable? Everytime Chevron customer retention changes my due date to 21 days, fleet reconfigures my credit line and puts it back to 14 days. They are a real work of art these folks!

By Alan @ 08/19/09 07:19:42 PMreport abuse

Security

Although credit card security sucks, for all those that use debit cards thinking they are better are wrong. If someone gets that pin and empties your account...HAHAHA. If someone steals my credit card number, like they did last month, I'm not out any money. Not to mention I get cash back for using my credit card and paying it off monthly. What's that term credit card companies call me, a "deadbeat" or something. They aren't making money off me, only the merchants.

By Mike @ 08/19/09 07:13:41 PMreport abuse

Interest rate hike "opt-out".

I received a notice on AUg 6 from American Express that my fixed rate will be changed to a variable rate. This will increase my rate by whatever the Prime Rate happens to be. I wonder if I can opt out since the notification was dated 08/06/09.
I ALWAYS pay on time and more than minimum.

By Bill @ 08/19/09 06:19:58 PMreport abuse

Debit Card vs. Credit Card

Thanks very much...

By Charlie @ 08/19/09 06:00:58 PMreport abuse

RE: Debit Card vs. Credit Card

Yes, they accept debit cards with a visa logo.

By anonymous @ 08/19/09 05:42:32 PMreport abuse

Hello - Does anyone know if airlines, hotels or other places that require a credit card for reservations accept a Debit Card from my checking account with the Visa logo on it to hold the reservation? Thanks.

By Charlie @ 08/19/09 05:33:00 PMreport abuse

Chase Card Terminated

I have fallen victim to Chase cancelling my credit card although I obeyed all the rules by always paying on time and making more than the minimum due. Granted the balance owed vs. credit limit was close. However, like many, I was meeting my obligations. My question...is anyone aware of an existing credit card that people in my position have a reasonable chance of acquiring. I have been struck down by the major banks already due to too many inquiries etc. I am now without a credit card and need one for emergency's. Thank you.

By Chuck @ 08/19/09 05:24:58 PMreport abuse

Debit Card

Even better than not "owing" on a credit card is not owning one in the first place! I only use Debit Cards and Cash and have been doing so since 2004.

By Dave @ 08/19/09 02:14:33 PMreport abuse

Credit Cards

I have a friend who has a Chase credit card. Min montly payment is now 400+ for 10,000 of credit. In 25 months it would be paid if not for the interest. It is crazy to own a credit card.

By Bill @ 08/19/09 07:02:22 AMreport abuse

Just say no

Only an idiot would run an unpaid balance on a credit card. If you don't have the money to buy a necessity, go to the bank and borrow it. If it's not a necessity and you don't have the money, don't buy it. Americans have got to learn to live below their means. Not within their means, but ultimately below their means. That is the only way our nation can accumulate the capital to advance our economy. Without it, we will continue to slide toward third world status. Living below our means is healthy both for individual families and for the country as a whole.

By Buzz G @ 08/18/09 06:23:57 PMreport abuse

proof of the date

How does the customer prove the date that the bill was mailed? What is the customer's recourse if they were not given 21 days?

By edrebber @ 08/18/09 06:03:39 PMreport abuse

Lobbyists rule again

Just to reafirm that the lobbyists still run the country through our elected? legislators.

By Jim @ 08/18/09 05:24:10 PMreport abuse

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Aug 18, 2009 -- New credit card rules being phased in this week

What others are saying