Starting Thursday, Aug. 20:
• Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate (APR) or other significant changes in the terms of a credit card account (fees or finance charges) for existing balances.
• Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
• Credit card companies must send statements to consumers 21 days before the due date of any payments.
“The Credit Card Act will help put an end to the abusive and deceptive practices that drive so many Americans deeper and deeper into debt,” said Hinojosa.
In February, many of the new law’s remaining provisions will kick in including a ban on double-cycle billing and rate hikes on existing balances.
“The bipartisan Credit Card Act brings common sense reform and consumer protections to our financial system and is part of our long-term plan to rebuild our economy in a way that is consistent with our values of responsibility and hard work, not high-flying finance schemes,” he added.