The Credit Cardholders’ Bill of Rights Act of 2009 passed in the Senate last week and it’s just waiting on the President’s signature to become law. Because it’s a bill that has significant support, that signature will not be long in coming. When the bill becomes law, there will be some pretty major changes in just what credit card companies can do.

• Retroactive rate changes on existing balances will be prohibited, unless the account is 60 day past due.
• An account holder’s payments beyond the minimum automatically applies to the balance with the high rates.
• Promotional and teaser rates must last at least six months, and card issuers cannot raise rates during the first year an account is open.
• Credit card bills must be sent 21 days before payment is due.
• Unless a card holder has okayed over-limit transactions, credit card companies cannot charge over-limit fees.
• For account holders under 21 years of age, credit card companies must have the signature of a parent or another co-signer or proof that the account holder can repay credit.
• Account holders must have 45 days notice of any change in terms.
• Credit card companies must eliminate fees for paying by mail, phone or electronic transfer, unless users are paying for expedited services.
• Gift cards must have a minimum of a five-year life.

All these changes may take a little time to be fully implemented, but you may start seeing the effects sooner, rather than later. And while they’re meant to help consumers that struggle with credit cards and related debts, there will be rippling affects that will hit credit card users who don’t have any problems. Because credit card companies actually make a significant profit on card holders who struggle with payments and fees, they’ve dropped many of the costs that used to be associated with credit cards — like annual fees. But with that profit margin reduced by new limits on fees and interest rates, credit card companies will probably look for ways to charge for simply having a credit card, rather than using it irresponsibly. Rising interest rates, annual fees and other expenses look likely — though the exact changes to specific programs probably won’t be known for a while yet.

While these changes will protect consumers, it’s best to still work hard at paying off your credit cards in full and limiting your use of them where possible. It’s not inconceivable that your interest rate will jump when the Credit Cardholders’ Bill of Rights Act of 2009 actually starts affecting the way credit card companies do business. It’s also worth keeping a very close eye on any mail you receive from your credit card issuer. With things in flux, you’ll probably be getting more mail, if only to notify you of changes to your account. You don’t want to get caught unawares by such changes, so it’s worth making an effort to read and understand each message coming from your credit card issuer. And it’s possible that this bill may not be the last legislative change in the next couple of years. As consumers adjust to new spending patterns and credit card companies try new tactics to make money, it’s possible that the government will find it necessary to revisit these issues.

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