President Obama welcomed implementation of the new credit card law on Monday.
The Credit Card Accountability Act, which Obama signed in May, would prohibit issuers from raising interest rates unless a cardholder is 60 days late, ban double-cycle billing and stop overlimit fees without an opt in.
“These new rules don’t absolve consumers of their obligation to pay their bills,” Obama said, “but they finally level the playing field so that every family and small business using a credit card has the information they need to make responsible financial decisions.”
Treasury Secretary Tim Geithner also praised the new law and used the opportunity to push for regulatory reform. “As we work with Congress on broader reform to make our financial system safer and more stable, we are also working to consolidate the fragmented authority of seven separate agencies into a single, independent and accountable Consumer Financial Protection Agency,” Geithner said.
Separately, the Federal Reserve issued a publication Monday to help customers understand overdraft rules that take effect July 1. The Fed publication is available at http://www.federalreserve.gov/consumerinfo/wyntk_overdraft.htm.