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One of the big complaints with the new credit card laws is that the vast majority of the law does not go into effect until February 2010. Of course, that gives credit card companies ample time to make changes to interest rates and terms of your credit card accounts. Well, if you can make it to August 20th, you will at least have options afforded by law with a change to your contract.

The Credit CARD Act required credit card companies to implement phase one of the new Credit CARD Act August 20th of 2009. The following is expected to go into effect:

(1) Creditors are now required to provide consumers with a 45 day notice prior to raising interest rates or changing terms and conditions on the credit card.

(2) Statements must be mailed 21 days in advanced to the due date (pretty sad that the lawmakers had to write this into a law).

(3) Credit card holders are given the right to opt out of any changes made by the credit card company prior to the changes going into effect.

The third rule can give consumers some relief. Some credit card companies will give the credit card holder the right to opt out of the changes. In other words, the credit card company would give the consumer the option to close the account and retain the current terms and conditions prior to the announcement of the change. Now, all card companies will have to give the customer that option. What happens if the consumer does not reject the changes before the 45 days? I haven’t seen anything that addresses the failure to contact the credit card company prior to the changes going into effect. Thus, it might be a good idea to make that call immediately.

Of course, the downside is that you can no longer use the account and the potential negative implications on your credit score. However, at least you maintain the original terms of the contract. One other note concerning the 45 day notice is that this does not apply to the reduction of credit limits. The credit card company can reduce the credit limit without providing notice.

Tags: Bob Brooks, Bobo carnival of politics, consumers, Credit CARD act, Credit Card Companies, credit card holders, credit card laws, credit limit, creditors, Deceptive Money, Festival of Stocks, interest rates, Prudent Money