2009 brought about some important new rights for finance consumers. 

As shocking as it sounds, Congress actually did some things to protect the victims of predatory credit card companies and banks this year.  New laws put restrictions upon finance charge increases,  additional fees,  marketing of credit and notice about changes in financial agreements.   Here's a summary of the two major legislative packages: 

 Credit CARD Act of 2009

- Requires card companies to provide a 45-day notice of an increase in your annual percentage rate. Credit card companies may not raise interest rates on new account holders for the first 12 months. Limits have been placed on the creditors' ability to impose changes to the terms, and promotional rates must be offered for at least six months.

- Double-cycle billing is no longer allowed. Nor can you be penalized for on-time payments.  

- You have the right to prohibit a creditor from completing any over-the-limit transactions resulting in a fee. 

- Over-the-limit fees can be billed only once unless the debtor gets an additional extension of credit.

- It requires penalty fees to be reasonable. The Federal Reserve is required to adopt regulations to determine what is reasonable.

- Creditors can't use the term "fixed rate" unless the credit card actually has a fixed rate.

- Creditors must send you their bills 21 days before they are due. Payment due dates must be on the same day of each month.  When a payment due date falls on a weekend or holiday, the consumer can pay the bill on the next business day without being late.

- Card issuers must consider your ability to pay before giving you a credit card  or increasing the credit limit.

- Your credit card bills must now tell you the following: The date a payment is due before you are charged a late-payment fee; and if your interest rate changes because your payment was late.

- Companies must now publish their credit card agreements on the Internet, and provide an archive copy to the Federal Reserve Bank.

- There are new protections for card holders under the age of 21.  

- It is now generally unlawful for companies to issue gift certificates ( including store gift cards and pre-paid cards ) that have an expiration date. In addition, stores and credit companies may not charge you a fee for not using the gift card/certificate immediately.  

Truth in Lending Amendments, Mortgages.

In 2008, Congress enacted the Mortgage Disclosure Improvement Act which amends the Truth in Lending Act.  The new law took affect in 2009.  Specifics include:

- Creditors must now make early disclosures on closed-end loans that are secured by a consumer's home, even when it is not the consumer's primary residence.

- You must now be given a disclosure statement before you are charged any fees. The only exception is a fee for obtaining your credit report.  Disclosures must be mailed or delivered seven business days before fees can be levied.  

- If the annual percentage rate in the disclosures becomes inaccurate, the creditor must provide a new notice of disclosure. 

Author David F. Scranton has just published an extensive summary of your new rights as a credit-card user, bank savings account holder, and mortgage customer. The article, titled "Year of the Consumer," is published on Mondaq. Viewing articles on Mondaq.com requires registration, but if you are interested in a summary of most of the new rights you now enjoy as a debtor, this scholarly article is for you.