The Credit CARD Act brings certain protections to credit card users. However, once you start weeding through the new contract language, loopholes will be discovered. Now is the time to point out what the most important credit card regulation laws can and cannot do for credit card users.

Law #1: Credit card companies must send a 45-day notice to increase rates.

CAN: Allow a consumer to reject an interest increase and close account.
By law, a consumer must receive a 45-day notification that account interest rates are set to change and must reply back.

CANNOT: Expect the bank to send just one notice to raise rates.
Even if you do opt to close your account, the bank might go as far to hold off closing your account and keep sending increase notices until you miss one, raising it (and then closing it). This very same situation happened to a Chase customer at this Bankaholic.com link.

Law #2: Limits on interest rates.

CAN: Keep consumer fixed rates protected.
The CARD Act laws are much tighter for accounts with fixed interest rates.

CANNOT: Keep variable rates as protected.
You might have noticed your bank changed your account from a fixed to variable rate. This allows for the credit card companies to pick the highest starting rate that is just 0.3 percentage points higher resulting in $720 million new fees for the companies. Fixed cards are almost impossible to come by.

Law #3: Consumers are given full disclosure on accounts.

CAN: Warn consumers in monthly statements how long it will take to pay off debts.
Credit card companies must now disclose the amount of time it will take card users to pay their balances off in full if they make only minimum monthly payments; the total amount they will pay, including interest; if they make minimum payments; and how much they would have to pay each month if they wish to pay off the balance in 36 months.

CANNOT: Limit new minimum fees.
Banks are sure to be raising minimum payments to higher amounts. If the consumer cannot make these new minimum payments, the issuer naturally has the rate to impose interest rate penalties and other fees.