New Credit Card Rules

Credit card companies are facing new regulations put in place to help protect consumers from rate hikes.

Starting today, companies will not be allowed to increase the interest rate on customers as long as people pay their bill on time. Also, customers will need to be notified at least 45 days in advance before any rate or fee hikes. These new rules will not apply to cards used for business.

Changes are part of the Credit Card Accountability, Responsibility and Disclosure Act. The new law comes at a time when Americans are paying $15 billion a year in penalty fees, according to a White House release. Card issuers will also be responsible for posting contracts online.

The new regulations come at a time when credit card companies are issuing more mailbox solicitations. Mailings increased 45% from third quarter 2009 to the fourth quarter, according to The Wall Street Journal.

Read the latest Bill here. (photo from CNN.com)