Credit card act to help customers make smarter choices

Financial counselor Jesse Jurgenson says consumers will literally see the effects of the "Card Act". Companies are required to clear up monthly statements to make them less confusing. It now requires things to be clearly marked, like extra fees, interest rates, and how long it will take you to pay off your bill at the minimum rate.

"Because it's supposed to shock the consumers into making them realize I need to start making bigger payments here. I can not continue making the minimum payment because I’m not going to be getting anywhere."

Card-users will now have an interest rate cap, and if a company is going to raise it, they're required to give you a 45 day notice and the opportunity to cancel the card and pay what you owe at the previously set interest.

"That has the possibility of saving consumers billions of dollars."

Jurgenson says the new law makes it harder for people under 21 to get a credit card, and bans credit card companies from coming on college campuses to attract more business. College students think this is a smart move by the government.

"They're definitely trying to help students control their debts. I think a lot of times now days students don't realize how much debt they're going to be having when they get out of college."

"A lot of people come to school right away and they get caught up with orientation and they think oh I need a credit card and this way I can go buy a TV that I probably don't need so I think it's a good thing maybe less people will stop getting so far into debt right away."

Jurgenson says customers will still need to beware of companies getting creative and catch you making a mistake.

"Something to keep in mind is the credit card companies will make their money, they're not going to give up without a fight."

Experts say companies can still raise fees, offer fewer rewards, and raise minimum payments. Companies have been raising interest rates in past months to catch up for today's law.

Tags: reporter stories, todd kurtz, credit cards, business, national, news