(HawaiiNewsNow) - Starting Monday, credit card companies will have to play by a brand new set of rules. A sweeping new credit card law goes into effect, and it's aimed at cracking down on predatory credit card practices, and helping consumers stay out of debt. From now on credit card issuers will not be able to raise your interest rate for 12 months -- unless you are 60 days past due. They'll be required to apply payments to the balance with the highest interest rate first. Monthly bills must show how long it will take you to pay off your balance. And statements will now arrive at least 21 days before your payment is due.
"Here's the bad news -- there's no limit on how much interest they can charge you, so the sky is still the limit," said Tamara Draut, vice president of policy and programs of DEMOS.
Banks can also still lower your credit limit at any time and create new fees. Some fear companies will continue to use those loopholes to their advantage.