Credit card issuers raising rates, plan more fees as first consumer protections kick in this week

Cost of credit card debt soaring

THE SAVAGE TRUTH | Issuers raising rates, planning more fees as first consumer protections kick in this week

http://www.suntimes.com/business/savage/1719592,terry-savage-credit-debt-081709.savagearticle

August 17, 2009
BY TERRY SAVAGE savage@suntimes.com

Being in debt is about to get a lot more expensive for millions of Americans. Credit card issuers have been rushing to raise rates in advance of this Thursday, when the first provisions of the Credit Card Accountability Responsibility and Disclosure Act (CARD) will go into effect, with other protections starting in February 2010.

Starting this week, card issuers need to give you more time to pay your bills. Now, instead of mailing bills 14 days before the due date, issuers must send bills 21 days in advance of the payment date. That will mean fewer people will get hit with late fees because of postal delays.

Another provision going into effect this week requires card issuers to give you 45 days' notice when they plan to raise your rate, instead of the current 15-day advance notice. That's behind the rash of notifications sent in recent weeks, advising you that no matter what your credit history, you'll be paying higher rates.

Meanwhile, card issuers are gearing up for next year's additional restrictions. Those include a ban on marketing to students or anyone under age 21. They'll be required to have a parent or guardian as a co-signer -- unless they can provide proof that they have income to make the payments.