On Friday May 22, 2009 President Obama approved new credit card legislation which makes it tougher for credit card companies to raise fees and interest rates on consumers. The legislation seeks to address what many Democrats and consumer groups believe are abusive practices by credit card companies. "With this bill we are putting in place some common sense reforms designed to protect consumers," Obama said at a signing ceremony at the White House. "We're not going to be giving people a free pass and we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives," he said. While many are calling the legislation a victory for the average consumer, others are worried that the new provisions will punish consumers with good credit who pay their bills on time. Banks and credit issuers argue the law will inevitably force them to drop at risk holders and raise interest rates overall.

Here are some of the key provisions of the bill provided by the Associated Press:

•Bans double-cycle billing, which is a method of calculating finance charges that takes into account the previous month's balance in addition to your current credit card balance.

•Prohibits retroactive rate increases unless the cardholder is at least 60 days behind in paying the bill. If a person does fall behind and the rate on past buys is increased, lenders must restore the lower rate after six months if the cardholder has paid monthly bills on time.

•Requires lenders to post their credit card agreements on the Internet.

•Requires that customers receive 45 days notice before rates are increased.

•Requires anyone under 21 to prove that they can repay the money before being given a card, or have a parent or guardian promise to pay off their debt if they default.

•Prohibits over-the-limit fees unless a cardholder elects to be allowed to go over a limit.

•Requires lenders to say how much time it would take and how much money in interest would be paid if only the minimum monthly payments are made.

•Requires that gift cards remain valid for five years.

*Additionally, an unrelated amendment allowing visitors to carry licensed guns in national parks and wildlife refugees was also included and approved. The provision permits guns if allowed under state law. There is essentially no relationship between the gun amendment and the credit card legislation.

Some of these provisions were already put in place by the Federal Reserve last December, but they weren't scheduled to kick in until July 2010. Instead, the 45-day notice will now go into effect in mid-August of this year, with the rest of the changes being implemented next February.

John Mattes of San Diego 6 recently interviewed UCAN attorney Art Neill regarding new Credit Card Legislation.