Southampton - Congressman Tim Bishop highlighted new consumer protections included in the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act that came into effect yesterday. The new regulations will require card issuers to justify increases in a card's Annual Percentage Rate (APR), and protect card holders from unreasonable fees.

"Big Banks padded their bottom lines for years with unjustifiable rate hikes and outrageous fees on credit-worthy card holders," Congressman Bishop said. "The CARD Act protects consumers and empowers them to better manage their household finances."

The new rules that went into effect on August 22 will fully put in place the "Credit Cardholder's Bill of Rights."

As of August 22 credit card companies must adhere to the following rules:

 • Your credit card company must justify increases in your Annual Percentage Rate (APR).

 • If your credit card company increases your APR, it must re-evaluate that rate increase every six months and, if appropriate, reduce your rate within 45 days after completing the evaluation.

Your credit card company cannot charge you a fee of more than $25 unless:

 • One of your last six payments was late, in which case your fee may be up to $35; or

 • Your credit card company can show that the costs it incurs as a result of late payments justify a higher fee.

 • Late payment fees cannot exceed the level of your minimum monthly payment.

 • Your credit card company can't charge you inactivity fees, such as fees for not using your card.

 • Your credit card company can't charge you more than one fee per event or transaction that violates your cardholder agreement. For example, you cannot be charged more than one fee for a single late payment.