The new credit card legislation enacted by Congress will take effect this week, forcing card issuers to provide consumers more time to pay their bills and to consider interest rate increases. This may be the first step toward stemming the tide of credit card based consumer bankruptcies.

Starting Thursday, issuers must give customers 45 days’ notice before raising their interest rates, instead of 15 days as previously required. Customers can then choose to pay what they owe at the original rate over time but they will not be able to use the card for future purchases.

The issuer reserves the right to increase the minimum payment. Card issuers will also have to mail bills 21 days–instead of 14 days–before the due date.

We believe this is a good first step toward credit card regulations but we won’t see dramatic relief until the balance of the regulations become effective in February.

Stay tuned……