While Obama’s election has a different meaning for all of us, if you are a credit card consumer, then his election has already touched you – and possibly significantly.  After taking office in January, President Obama signed a new credit-card law on May 22, 2009 to offer greater protection to consumers. The first phase of the new “Credit Card Accountability, Responsibility and Disclosure Act of 2009” went into effect August 19th.  In simplest terms, credit card issuers:

1. must give cardholders 45 days notice before raising card interest rates (previously 15 days) permitting the cardholder to choose to pay off the account balance at the lower interest rate while agreeing to terminate use of the card for future purchases.  This time also enables a smart consumer to shop for other credit card options before the new rate goes into effect.
2. are required to mail bills 21 days before the account is due, giving more time to make payments and avoid late-payment fees. 

Now some damage to consumers may have occurred from May to August of this year because some credit card companies scrambled to last minute modifications to “terms and conditions” to credit agreement prior to the first phase implementation

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