Credit card laws take effect this month

BUFFALO, N.Y. (WIVB) - New credit card laws take effect this month.

The holidays are over and the only presents in the mail are those nagging credit card bills that are finally due.

Last year, congress passed the Credit Card Accountability, Responsibility and Disclosure Act.

As a result a number of changes take effect this month.

"There's a lot of consumer protection here," said Paul Atkinson, of Consumer Credit Counseling Service, of Buffalo.

Protection, that will change how creditors seek their money, according to the President of Consumer Credit Counseling of Buffalo, Paul Atkinson.

"The most important thing is if you have an existing card, the credit card issuer can no longer just change your rate," said Atkinson.

Now, you have more notice on a rate change. Forty-five days beforehand, instead of 15 days.

But make sure you read your statement, because the new laws don't prevent creditors from putting your new rate in fine print.

"It doesn't say where it has to be, doesn't have to be bold just simply says it has to be on the statement," Atkinson said.

Other changes: If you don't agree to an interest rate change, just say no.

"You can notify the company that you don't wish them to continue issuing your card and opt out of it," said Atkinson.

With no penalties?

"Absolutely no penalties whatsoever," Atkinson said.

You'll still have to pay your existing balance, but this gives consumers the option to shop around for better rates.

Other major changes include: More time to pay your bill, cardholders will have at least 21 days, Two-cycle billing will be eliminated, along with excessive fees for cardholders with poor credit histories.

Visit Consumer Credit Counseling Service, here.