New credit card legislation goes into effect Monday

Iowa Attorney General Tom Miller will be holding a news conference Monday, Feb. 22 to explain in detail the impacts of new federal legislation that will affect credit card companies and customers.

Miller will be discussing the “Credit CARD Act,” which President Obama signed into law in May of 2009, and which goes into effect Monday.

The law was crafted in an effort to curb unfair fees and rate hikes as well as increase accountability and transparency between credit companies and card holders.

Among other things, the law will proscribe interest rate hikes within 12 months a consumer has a new card, as well as require companies to mail out bills at least 21 days before their due date.

The law will also forbid companies from offering free items to students and young people to induce them to sign up for a new credit card.

For more information on the law, go to:

http://www.whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/