Even consumers who've been responsible with credit and remain current on their payments are opening their mailboxes to find letters from their card companies outlining new rules--all of them favoring the creditor. Enter the Credit Card Accountability, Responsibility, and Disclosure (CARD, get it?) Act.

The new set of laws signed into effect by President Obama on May 22 is intended to protect credit card consumers who have been burned by the ever-changing credit card rules.

1. Banks can no longer raise rates retroactively on an existing balance because they feel like it. No more raising the rate on card A because you were late paying card b. You'll have to be at least 60 days late to have your rate increased automatically.
2. Banks can still raise rates on new balances, but they have to give you a forty-five day notice. This has been raised from a fifteen day notice.
3. Over-the-limit fees can't be charged if the creditor approved the transaction that put you over the limit.
4. Potential customers from age 18 to 21 won't be able to ruin their credit and in some cases their lives with a bunch of credit card debt. To get a credit card, they must have adequate income, a co-signer, or take a financial literacy course. No more preying on unemployed college students for the card companies.
5. No more double-cycle billing. This means card companies can no longer charge interest on debt paid off the previous month.
6. Payments above the minimum amount will be applied to the portion of the debt with the higher rate.
7. A statement must be sent 21 days before the payment is due. No more getting your bill in the mail and finding you have barely enough time to write the check and put it in the mail without being late.

Let's hope that these new rules will take the "gotcha!" component out of dealing with credit card companies.

Source: www.BankRate.com