After the article last month, we have many questions about new and existing laws as they relate to personal finances and estates.

First, everyone is asking about the new Credit Card Law, Credit Card Accountability Responsibility and Disclosure Act of 2009, and if it is really going to help them.

When will the changes take effect? Most of the changes became effective February 22, 2010. What are the key provisions of the new law? 1. One Year Rule. A credit card company will no longer be able to change the interest rate, the APR, for one year after opening the account unless you were notified before you took the card of a rate change sooner. So, if the rate is an introductory low rate, it must specify that the rate expires on X date (at least 6 months from the date of issue) or it must be good for one year. This is not true if you are 60 days past due in a payment, then the credit card company may change the rate without notice.

2. Raising Rates. A credit card company can raise rates after the first year, but only on new purchases. The card issuer must also give you 45 days notice of any rate increase on new purchases. The card issuer may not raise the rate more than the range disclosed in the disclosure forms you received when you received your card. You may cancel your card before any rate increase takes effect. If you choose to cancel your card, you may continue to repay the card at the lower rate, and cannot be required to immediately repay the outstanding balance on the card.

3. No interest payable on paid balances. Credit card companies were able to calculate interest on “average daily balances”, even if you had paid a portion of the bill. This is called Double Cycle Billing. The new law eliminates this calculation and allows credit card companies to only change interest on the present outstanding balance.

4. Statements will change. Your credit card billing statements will change in some significant ways. First, the company must disclose how long it will take to pay off the outstanding balance if you only make minimum payments. Second, it must show what your monthly payment should be to pay off the existing balance in three years. Third, it must show what your late fee will be if you make a late payment, and whether or not a late payment will trigger an interest rate increase on your account. If so, they must show what the new interest rate will be.

5. Payment due dates. Beginning February 22, 2010, your payment due date will be the same day each month. If your due date is on a weekend or a holiday, the deadline is considered to be the next business day. Also, companies must now post your payments received by 5 p.m. local time as being timely. This eliminates the 10 a.m. or 11 a.m. cut off times that many companies had, and lessens the possibility of late charges on your account. Be sure to read the disclosures you received from your credit card companies so you understand the contract you have entered into with them. If terms are disclosed in their circular or notices, you will be held to have agreed with the terms and conditions as set forth.

Are gift cards really safe to purchase? 1. Expiration Dates. Under the federal law, gift cards may not expire within five years from the date they are activated, unless a different expiration date is disclosed. In California, gift cards generally may not expire, there are a few exceptions.

2. Service Fees. In California, the gift card cannot include a service fee or a fee for dormancy (non-usage) unless:

• it hasn’t been used for 24 consective months;
  
  
• the non-usage fee cannot be more than $1.00/month;
  
  
• the card has a printed statement on it regarding the charging of the fee;
  
  
• and maybe if it is VISA, AMERICAN EXPRESS, or MASTERCARD, because the card is good at multiple non-related businesses.