How to Understand and Improve Your Credit ScorePosted on October 6, 2009

By CreditCards.com

Starting Thursday, when the first phase of the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act goes into effect, credit card users will be armed with a new right to say no to — that is, opt out of — interest-rate increases and other changes in their credit card agreements.

Under the first phase of the new law, consumers must be given:

* At least 45 days’ warning of changes to their credit card accounts. Currently, only 15 days’ notice is required unless customers default on their accounts, in which case interest-rate increases can go into effect immediately.

* At least 21 days to pay their monthly credit card statements without threat of late fees.

* The right to opt out of interest-rate and fee increases and the right to cancel their accounts while paying off the balances under the old, lower interest rates. Currently, issuers offer opt-out options at their discretion, and it is not a consumer right.

Other aspects of the new credit card law — such as restrictions on interest-rate increases, bans on issuing and marketing credit cards to young adults, and regulations on gift cards — take effect in February 2010 and later. In addition, starting July 1, 2010, a host of requirements for disclosing fees, rates and terms on monthly statements, credit card applications and mailers will become law as a result of new rules drafted and approved by the Federal Reserve Board and other banking regulators.