Here are the credit card rules explained. There have been some questions about what the new rules will mean to credit card holders and I thought this article did a good job of explaining what the credit card companies can do.

Remember to read the fine print before getting a credit card and know that you are responsible for charges made.

New credit card rules add accountability New credit card rules add accountability

Vast changes in credit regulation coupled with a souring economy turned 2009 into a turbulent credit year, with a record number of rate hikes, consumer cancellations and changes in fees, terms and credit limits. Experts say there’s more in store for 2010.

“2010 is going to be the year of accountability,” said Adam Levin, chairman and co-founder of Credit.com, a credit-shopping Web site.

To recap, Congress passed the CARD Act — short for the Credit Card Accountability, Responsibility and Disclosure Act of 2009 — in May. Legislators gave banks time to acclimate to the new rules by putting in three effective dates — August 2009, February 2010 and August 2010, which affects gift cards.

Last August,credit-card issuers were required to give consumers 45 days’ notice of rate hikes and bill people at least 21 days before their payments were due.

In addition, consumers got the ability to “opt out” of a rate hike. The catch is the bank can close your account and double your minimum monthly payment, Levin said.

But most significant changes go into effect early next year.

As of Feb. 22, if you have a consistent history of paying on time your rates cannot be increased on outstanding balances except when a “teaser” rate expires or when you have a variable-rate credit card.

If a credit card company hikes rates on a fixed-rate card, it is only allowed to charge the higher rate on new charges.

Your rate can be increased if you’ve been irresponsible about your credit use, though. If your payment is more than 60 days late, the issuer can charge a higher penalty rate that can be applied to an existing balance. However, the credit card company must reinstate the lower rate if you make at least six months of on-time payments.    –more

Related credit card articles

• $50 Billion in New Credit Card Fees? Lenders React to CARD Act (dailyfinance.com)
• MICHELLE SINGLETARY: Ring in the New Year With Consumer Power (kitsapsun.com)