MoneyWise :: Making the most of new credit card protections

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Released: February 23, 2010

Making the most of new credit card protections

Source: Sandra Block, USA Today

Joseph Strickland, 55, of Brooklet, Ga., has used credit cards for years, and he’s never made a late payment. So he was more than a little perturbed last year when he received a letter from Capital One, informing him that the credit card company planned to increase the 7.9% interest rate on his $7,000 balance to 17.9%.

Strickland scraped together enough money to pay off all but $1,000 of the balance. Then he received another letter from Capital One, informing him that his credit limit had been cut to $1,400 from $7,900. Fed up, he paid off the remaining balance and closed his account.

Congress enacted legislation last year that targets the industry’s most controversial practices. Some of the most significant provisions became effective Monday. But consumers will still need to be vigilant. If you’re a regular credit card user, here are some tips for making the most of the new protections:

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