In May 2009, President Obama signed The Credit Card Accountability Responsibility and Disclosure Act of 2009 ("Credit CARD Act") into law.  The Act amended the federal Truth in Lending Act ("TILA") to include provisions for credit companies to employ fair and transparent practices in the issuance of credit cards.  The Credit CARD Act contains a number of protections for credit card consumers, many of which are set to take effect on February 22, 2010.  These provisions include, among other things:

• Ban on Retroactive Rate Increases. The Act prohibits retroactive interest rate increases and eliminates "universal default," a practice where a creditcard issuer raises interest rates due to lateness or default with other creditors (despite the cardholder being in good standing with the credit card issuer in question).

• No Rate Increases in First Year.The Act, with certain exceptions, prohibits credit card issuers from increasing rates in the first year a credit card account is opened.

• Due Dates for Credit Card Bills.Credit card statements must be mailed 21 days before the due date so that card holders have a reasonable time to pay their bill.Due dates must also be on the same day of each month. If the due date falls on a day in which the credit card company does not receive or accept payments by mail (including weekends and holidays), the credit card company may not treat a payment received on the next business day as late.

• Interest Calculation. The Act, with certain exceptions,prohibits interest charges through "double-cycle billing,"a practice which takes the average daily balance for the currentandprevious billing cycles to calculate finance charges.

• Over-the-Limit Fees. Credit card companies are prohibitedfrom charging "over-the-limit" fees unless the cardholder receives notice of such fee and allows the company to complete the over-the-limit transaction. An over-the-limit fee may be imposed only once during a billing cycle.

• Fees on Credit Card Payments.The Act prohibits credit card companies from charging a fee to pay a credit card debt, whether by mail, telephone, or electronic transfer, except for live services to make expedited payments. The Act also requires that any penalty feesbe reasonable and proportional to the violation.

• Credit Cards to Young People. Credit cards issued to persons under the age of 21 must have a co-signor or proof that the applicant has an independent means of repaying any credit.A credit card company may also not offer a student at an institution of higher education any tangible item to induce him to apply for a credit card if this offer is madeon or near a school or school- sponsored event.

• Gift Cards. The Act also protects consumers of gift cards and certificates by requiring a five-year life span on the cards from the date on which the certificate was issued, or the date on which funds were last loaded onto the card. The terms of expiration must be clearly and conspicuously stated on the card. Companies issuing gift cards are also prohibited,with certain exceptions,from imposinga dormancy (inactivity) fee or service fee unless the card has been inactive for at least 12 months.

Finkelstein Thompson LLP specializes in representing individuals, non-profit organizations, and businesses injured or defrauded by the wrongdoing of others in class actions throughout the country.  If you feel you have been affected by any of the practices outlined above and would like to discuss your rights and interests, please contact Finkelstein Thompson's Washington, D.C. offices at (877) 337-1050 or by email at This email address is being protected from spam bots, you need Javascript enabled to view it .