Editor's note: This is the last in a series for National Consumer Protection Week.



On Feb. 22, the federal Credit Card Accountability, Responsibility and Disclosure (CARD) Act took effect in an effort to protect consumers from sky- high annual percentage rates (APR), hidden fees and what can often be confusing language.

Under CARD, credit card companies are restricted in how they can raise your APR. While the new regulations will offer protection against rates that seem to increase overnight, it doesn't mean consumers who default on payments won't still be subject to APR increases.

To make up for the lost revenue from higher APR's, consumers could see other fees instituted by banks and credit card companies, including annual fees for cards and higher balance transfer fees. Included in the CARD Act is a Credit Cardholders' Bill of Rights. A sample of those rights are:

♦Cardholders deserve protections against arbitrary interest rate increases.

♦Cardholders who pay on time should not be penalized.

♦Cardholders should be protected from due date gimmicks.

♦Cardholders should be protected from misleading terms.

♦Cardholders deserve the right to set limits on their credit.

♦Card companies should fairly credit and allocate payments.

♦Card companies should not impose excessive fees on cardholders.

Other changes under the new regulations intended to benefit card customers include:

♦Statements must be sent 21 days before the due date.

♦Payment due dates must be the same every month.

♦Those under 21 will need a co-signor.

These new regulations have the potential to help decrease fraud. Credit card companies are prohibited from charging over-the-limit fees unless the consumer opts to allow transactions that exceed the limit.

Thousands of Hoosiers have filed credit-service complaints since the recession hit. Many are tied to interest rate reduction offers and debt consolidation/relief services. The Indiana General Assembly is considering a bill that would redefine a “credit service organization” to provide more protections for consumers. If the bill passes, anyone who offers consumers services to lower their interest rate on a credit card, loan or mortgage and anyone who provides debt-settlement services would be considered a credit service organization. Organizations would be required to offer notice of a three-day cancellation policy and obtain a $25,000 surety bond before doing business in Indiana.