The recent worldwide recession saw a lot of companies and individuals sink under debt and for most of them the debt was not easy to pay back. The government agencies seeing the market crunch decided to seek out new reforms. Then the new credit card laws were introduced and because they do not introduce some drastic changes in the interest rates, but they certainly improve their legislation which means that the changes in interest rates will be fairly accounted for.
The new regulations require the creditors to send a 21 day notice first to the credit card holder for paying the bills. This buys the debtors more time and space to organize the money. The credit card companies also can not change the interest rates as and when desires and at least have to charge the promotional interest rates for 6 months. This offers customers security from very high interest rates. They get more time to pay their bills and the authority to opt out of any significant changes in terms and conditions on their accounts. The new regulation also prohibits the bank from charging late fees from the debtors even on transactions and payments made through net or telephone.
The new regulations will go along way to make the use of credit cards customer friendly. People of 21 yrs of age and younger having no permanent sources of income are also prohibited by law to have a credit card. This will stop its misuse by youngsters who do not have enough knowledge about its laws. The new laws have transferred some amount of power back in the hands of customers. This will save them the harrowing experience of bankruptcy and help them to clear their debts easily.