Credit Card Law 2010 – As of February 22, consumers are given some new protections under a federal law to clamp down credit card companies.

CBS News Correspondent Elaine Quijano said that, The Credit Card Accountability Responsibility and Disclosure Act is now in full effect, though some of its provisions will take hold in August.

The good news is, the new credit card rules don’t absolve clients of their obligation to pay bills.

“But they (credit card companies) finally level the playing field so that every family and small business using a credit card has the information they need to make responsible financial decisions,” said President Obama.

Moreover, the law also implements the ‘no interest rate increase’ in the first year of opening an account.

Here’s more of President Obama’s take:

For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs. But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable.

The new rules taking effect today mean that credit card companies can no longer retroactively increase rates or increase rates in the first year you open an account, charge misleading late fees or use over-limit fee traps. They’re now required to send ample notification if they plan to make changes to the terms of your card and they must employ clear, simple standard payment dates and times.

There are new protections for underage consumers, restrictions on double billing and caps on high-fee cards. The new rules are an unprecedented step in my administration’s ongoing efforts to strengthen consumer protections and enact meaningful financial reform.

Photo credits: Google