New protections for credit card users

A new federal law expands consumer protections to Iowans who use credit cards. Here are some important aspects of the law:

** Card issuers may not increase rates retroactively on existing balances, unless you are 60 days late on a payment.

** Card issuers may not raise your interest rate if you are late paying on another company’s bill.

** Card companies must provide more billing information, including how long it would take to pay off your balance if you only make minimum payments.

** Credit card companies must give you 45 days notice of any significant changes in your card terms.

** The interest rate on a new card cannot be increased in the first 12 months unless an introductory rate has expired or if you have a variable interest rate card.

** Credit cards will not be as available to persons under 21.

** Companies may no longer offer free items to students to get them to sign up for a card on or around a campus or at college-sponsored events