Heinrich: New Credit Card Protections Go Into Effect Today

Press Release

Today, new, common-sense rules have gone into effect that protect credit card holders from a wide range of unfair practices, U.S. Representative Martin Heinrich reminded constituents. Rep. Heinrich, a strong supporter of consumer protection, voted for the Credit Card Holders Bill of Rights, which ensures credit card companies provide reliable, transparent information so consumers have the tools to make smart, informed decisions about their personal finances.

"These protections going into effect today put fairness back on the side of New Mexico consumers and impact households across America," said Rep. Heinrich. "The unfair and confusing practices used by some credit card companies have contributed to the massive debt our families now carry, and these new rules will empower consumers to save money."

Some of the key changes credit card holders can expect include:

* Credit card companies must give at least 45 days notice before increasing your interest rate, changing certain fees, or making other significant changes to the terms of your card.
* Credit card bills must provide information to clearly explain how long it will take to pay off the balance by making only minimum payments.
* Credit card companies will be restricted from allowing over-the-limit transactions without the card holders' knowledge.
* Interest rate increases will, in most cases, be prohibited during the first year of the life of an account.
* Any changes to your billing will require a statement detailing those changes at least 21 days before the payment is due.

Source