What’s changing and what isn’t

The Credit CARD Act of 2009 contains sweeping pro-consumer reforms. Most of the rules go into effect in February 2010; those requiring sufficient notice of account changes and time to pay bills are already in effect. Here's what the law does and what it leaves unchanged:

The law DOES:

• Require banks to mail bills 21 days before the due date and give 45 days' notice of changes in APR, fees, and other key terms.
• Allow you to opt out of rate hikes and fee increases and to close accounts while paying off the balances under the old interest rates.
• Restrict interest-rate increases during the first year of card use.
• Prohibit banks from charging overlimit fees, unless you sign up to be allowed to exceed your credit limit.
• Prohibit rate increases on existing balances unless you're 60 days overdue.
• Give you the right to revert to an older, lower interest rate after making on-time payments for six consecutive months.
• Restrict cards for people under 21 without an older cosigner or proven income.
• Require banks to apply payments to the balances with the highest interest rate first.
• Prohibit gift-card fees for one year and expiration dates for at least five years.

The law DOESN'T:

• Prevent issuers from imposing annual fees on credit accounts.
• Set a ceiling on interest rates.
• Allow you to opt out of increases in the minimum monthly payment.
• Require banks to give you notice if your borrowing limit is lowered or your credit card is canceled.
• Require banks to notify you if your interest rate goes up because of an increase in prevailing rates, such the prime rate.
• Impose regulations on most prepaid cards or debit cards.