Wednesday, May 20, 2009

What the New Credit Card Rules Mean for You [Credit] . You'll see a lot of news stories today about the credit card bill just passed by the U.S. Senate. Here's the changes you'll actually see in your statements, assuming it becomes law. Photo by Brett L.. Consumer Reports' Money blog runs down both the big picture and granular changes enforced by the bill, which generally seeks to cut back on unforeseen and unannounced fees and agreement changes. Here's a few of the items that you'll want to take note of, especially if you're signing up for a new card any time soon: Bills can be paid online or over the phone without incurring a processing fee. Customers must be over 60 days late on payments before their interest rate can be raised on balances; if the rate is raised, it will go back to the lower rate if customers make the minimum payment on time for six months in a row. Overlimit fees can't be charged unless cardholders are told that the purchase will put them over their limit and they authorize it to go through anyway. If your card has more than one interest rate on balances, then payments must be applied to the highest interest rate first. The full breakdown resides at Consumer Reports' post, but that first item, especially, is worth noting for the future; a certain Lifehacker editors' card issuer charges $15 to pay by phone, even through an automated system, leaving him with the occasional Hobson's choice of fee vs. late payment. If President Obama signs off on the compromise bill between the House and Senate versions, the changes would go into effect nine months from the signing. Glad to see the new laws? Still waiting on other reforms? You've got the floor in the comments. Senate passes credit card reform: What's in it for consumers: Consumer Reports Money & Shopping Blog [Consumer Reports Money Blog] [Lifehacker] 10:12:11 AM     Stricter Fuel Economy Standards Yesterday, President Obama proposed stricter fuel economy standards to cut down on vehicle greenhouse gas emissions. This means there will be a federal standard that is the equivalent to what is currently required of automobiles in California. The current standards are 27.5 miles per gallon, while this plan will require that cars get an overall average of 35.5 miles per gallon by 2016. Some pros of this plan are that these changes will save about 1.8 billion barrels of oil by 2016 and will remove the equivalent of 177 million cars from the roads. It is also speculated that it could help the struggling U.S. auto industry by giving them a single goal to meet. On the other side of the argument, some say that since this takes auto regulation out of the hands of the state, that it is only increasing an already too big federal government. This plan will also likely increase the cost of a car about $600- but this should be made up by saving on gas. What do you think of the new plan? - Colleen [Gov Gab: Your U.S. Government Blog] 10:10:08 AM

© Copyright 2009 Jocelyn Shaw. Last update: 6/1/2009; 10:21:53 AM. Photo curtesy of Marjorie O'Brien