How the New Credit Card Bill May Strengthen Your Billing Rights

Consumers Need Financial and Legislative Aid to Halt Unfair Practices

The newest Credit Card legislation, officially known as the Credit Card Bill of Rights, could actually help consumers. If you've ever opened a credit card statement and seen some unexpected fees or a higher rate of interest (even if you didn't get a heads up notice), then perhaps you feel that the newest consumer protection move is needed. If you have a perfect payment history, perhaps those sudden changes have you feeling especially baffled, especially if you thought a credit card agreement meant that you had to agree or approve of any changes ahead of time. Otherwise, isn't that agreement a bit lop-sided?

Maybe that is why the Credit Card Bill of Rights is actually slated to be heard before a congressional committee this week. Since it isn't always easy to keep on top of consumer rights when it comes to credit cards, here's a quick rundown on the latest bill and what you can do in the meantime to stay on top of credit card debt and charges:

Why there is a need for the Credit Card Bill of Rights and what it can do for you

Perhaps you've been among the lucky ones who haven't been subjected to surprises when it comes to credit cards. These surprises can include discovering that a fixed rate credit card is not really fixed but subject to change at any moment. Other realities that consumers may not be prepared to handle? Lengthy credit card agreements, including ones that may be up to 42 pages long (see sources at end of article) . Interest rates and fees can suddenly skyrocket, even for those who pay their credit card bills on time and have a good credit rating. It isn't just people who shirk their debts or spend carelessly that get socked by credit card changes.

This is the kind of thing that has many people sputtering in protest. This is the kind of thing that can make a Credit Card Bill of Rights a possible aid to the average consumer, one who may not understand current credit card agreements or who thinks he or she has a fixed rate credit card but really doesn't.