The Senate has passed and has sent to the House the new credit card legislation. The President is expected to sign the legislation as soon as it passes house approval. The bill, in essence, is too make it harder for credit card companies to raise interest rates on your credit card, if you miss a payment. Unfortunately, even after the President signs the bill, it will not take effect until 2010.

Some of the other consumer protections in the bill include:

• Card holders who are over sixty (60) days late on their payments can (and probably will) have their interest rates raised. The interest rate would then revert back to its original rate if the consumer makes the minimum payment for six (6) consecutive months.
• If your credit card has two interest rates on it, as most due for cash advances etc., all payments must be applied to the higher interest rates first.
• Gift cards cannot expire until 5 years from the current one year they have now.
• The credit card agreements must be posted on the credit card companies web site with ease of access and understandability.
• Credit card statements must be mailed at least twenty-one (21) days prior to the due date.
• Anyone under the age of twenty-one (21) must have a co-signer on their credit card, unless they are able to show the credit card company that they have the ability to make monthly payments.
• Bills can be paid over the telephone without having to pay a fee for the transaction.

We will keep you updated on this new legislation. Stayed tuned to your debt reduction company for updates.