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New Protections for Credit Card Users Now in Effect

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New federal regulations to protect credit card users go into effect today.

Consumers should notice a difference in their monthly statements. Credit card companies are now required to show how long it would take to pay off a credit card balance and how much interest would build up if customers pay just the monthly minimum.

Norma Reyes is the Commissioner of the City of Chicago’s Department of Business Affairs and Consumer Protection. She says the law is also meant to protect young consumers.

REYES: People that are 18 and 19 in college - I remember when I was there and getting all these letters, hey apply for a Visa, apply for a credit card. So now with this act, the Credit Card Act, consumers under the age of 21 will only be issued a credit card when they have a co-signer that is over 21.

Credit card users will now have their payments due on the same day each month. Congress will also have greater oversight of the credit card industry. And consumers should have access to more information and protection against arbitrary interest rate increases and excessive fees.

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