Did you know there are new laws when it comes to your credit cards? The Credit CARD (Credit Card Accountability, Responsibility, and Disclosure) Act of 2009 was passed back in May of 2009 but went into effect February 22, 2010. I know I’m a little late in writing about this, but I thought it was worth discussing.

Now first let me say, I’m not going to make this post about the pros and cons of credit card usage. I know many of you were rolling your eyes when you saw the title, but don’t worry, no lecture here!!!

The purpose of this Act was to basically end the deceptive practices by the credit card companies. Things like changing due dates, APR, and changing interest rates can become too overwhelming  and confusing for the consumer. I have to agree with that.

One change I’m particularly happy to see is in relation to young people and credit cards. According to creditcards.com

The law places strict limitations on marketing and issuing credit cards to young people. Consumers younger than 21, who are not authorized users on their parents’ credit card accounts, must show proof of income to repay card loans or have an adult co-signer if they want accounts in their own names.

Offering free gifts (such as pizzas, t-shirts or hats) as inducements for college students to sign up for credit cards is banned if conducted within 1,000 feet of campus.

Finally. This has always been one of my pet peeves of the credit card companies. They started preying on the know-it-all youngsters (yes, I was one too) and before you know it, these kids are graduating college with $5-10,000 in credit card debt! Its crazy. You can read more about the creditcard.com article here.

NPR gives a nice summary of the most relevant points to the CARD Act of 2009 found here. Here are the highlights:

— Interest Rates: Card issuers cannot increase interest rates during the first year on new accounts. In most cases, retroactive rate increases are prohibited.

— Payments and Billing: The issuer has to set the payment-due deadline on the same day each month.

— Fees: Consumers cannot be charged extra fees for making payments online, by phone or by mail.

— Disclosures: Issuers must notify cardholders of significant changes to their account terms at least 45 days before the changes take effect. If the consumer objects to the changes, he or she can close the account, or “opt out.”

— Young People: Consumers younger than 21 need an adult co-signer to open a credit card. In addition, the card issuers cannot entice students to sign up by offering free pizzas or other gifts within 1,000 feet of a college campus.

So what do you think about this new CARD Act? Do you think its positive or negative to try to help get consumers out of debt? Please leave your comments and let me know what you are thinking!