Some of the major provisions are becoming well known by most cardholders. When you perform a credit card comparison, include the following publicized items in your research: Credit card companies can no longer make changes at will that apply to prior purchases and balances. All modifications to original credit card offers and terms of credit card agreements must be fully and clearly disclosed. Cardholders now have the right to “opt out” of (deny) these changes. Consumers must be aware, however, that if they refuse to accept changes, the card company may cancel their account. Some important provisions have not been widely publicized. When you compare credit cards, consider these items, especially when examining low interest credit cards for balance transfers, as they may be even more important. Many consumers are unaware of these lesser known provisions, yet in many situations, these regulations and privileges may be just as important as the more recognized features. New limitations on penalties and fees. Along with the elimination of over-limit fees, without cardholder agreement, the Act prohibits charging consumers for making payments online, over the phone, by snail mail, or through any other means. All penalty fees must be proportionate and reasonable according to the nature of the alleged violation. For example, late payment fees must be in proportion to the amount of the late payment. The Federal Reserve Board (FRB) will issue specific rules about penalty fees in the future. Payment due date rules. Your credit card company must issue (if online) or mail your monthly billing statement at least 21 days before payment due date. If your card has a grace period, the grace period must extend at least 21 days after issuing the billing statement. Additionally, your payment due date must now fall on the same day each month. No further double-cycle billing. Many consumers are unaware of this expensive credit card practice. Your credit card company may have gone back to your prior cycle balance to calculate your finance charge for the current cycle (note that not all issuers used this practice). Therefore, if you made a large payment and reduction in your outstanding balance during the current cycle, you may have received a larger finance charge than you really deserved. Your credit card rates should no longer be as expensive with the elimination of double-cycle billing based on your payment patterns. Young consumers’ protection. Persons under the age of 21 years have often endured higher interest and fees than other people. Prospective cardholders under 21 should compare credit card offers with the understanding that they must now include an over-21 cosigner or evidence that they have independent means to repay their credit limit. Proof of income or other sources of funds must be offered. Colleges must disclose all marketing contracts they have with credit card companies and submit an annual report to the FRB explaining all promotional terms and conditions with credit card companies over the past year. Credit limit fee deductions with subprime credit cards now prohibited. Lenders that offer cards to applicants with poor credit often charge high administration, membership, or processing fees. They then deduct these high fees from the new cardholder’s credit limit. For example, a lender that offers subprime credit cards with $200 spending limits charges a $65 initial fee. They then deduct this fee before the card is issued, leaving the cardholder with an initial balance, even though s/he has yet to make a purchase. The CARD Act prohibits deducting fees in excess of 25% of a credit card’s maximum spending limit. These provisions have enjoyed much less publicity than some other features. As you can see, however, they’re just as important to some cardholders. Consider and remember any of these provisions that might make your credit card experience a more enjoyable and profitable venture. Take particular note of these changes when considering balance transfer cards and credit card rewards offers. 
Becoming law in February 2010, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 offers consumers new rights by requiring credit card issuers to better disclose the terms of their cardholder agreements. Further, card companies must notify consumers about rate, fee, and other changes in advance to give cardholders time to adjust to these modifications or take other action.CARD Act protects consumers from some troubling credit card practices
Five things you may not know that could protect you
Less publicity doesn’t mean less important
Five things you may not know about the CARD Act
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