Here's a representative sampling of last week's Q&A on the credit card legislation. If we missed something let us know.

1. Grace Periods

Dan asked: “Is it true that the new credit card bill will allow credit card companies to charge interest from the day of the charge, even if you pay the balance in full every month? Thank you”

CU Response: Card companies are currently not required by law to give people grace periods. They have always been allowed to charge interest from the day of the charge, if they want. The bill does not change this.

But as the card companies know, for people who pay off their balance in full each month, a credit card without a grace period is essentially useless. This is why almost all cards come with grace periods if the balance is paid in full.

There is very little chance that card companies will eliminate grace periods despite their public threats. If they do, these good customers will likely choose to use their debit cards instead of paying unnecessary interest to the card companies.

Though card companies do not make money off of interest payments from these consumers, they do make a great profit from the transaction or interchange fees each time the consumer uses the card. So it is in the companies' best interest to retain these consumers.

2. Annual Fees

Angela asked: Does this bill prevent huge increases in annual fees or will this be the result of the credit card companies not being able to collect an adequate profit from those who carry huge balances?

CU Response: The bill does not put a limit on annual fees, but does require that the company give you 45 days notice before making any significant changes to your account. It is likely that an increase or addition of an annual fee will be considered a "significant change." (The Fed must issue regulations on this subject.)
Card companies may try to tack on annual fees but they will still be competing with each other for your business. With 45 days notice, you have time to call your card company and challenge the fee. You can shop around for another card that does not charge a fee. The bill ensures that you know the cost of the credit before incurring debt. This will give consumers accurate information so that they can adequately shop for the best deal.

3. Young People

Santos asked: What's with the discrimination against adults under 21? I'm all for the restrictions of free gifts and marketing on college campuses. And I'm DEFINITELY in support of requiring companies to more adequately consider an individuals ability to repay their debts. But, why should someone who is 20 be judged differently than someone who is 21? Shouldn't they, along with 30, 40, 50 and 90 year olds all have their ability to repay considered equally?

Chris Asked: I currently have a credit card that I pay off in full every month. I'm 19 years old and work full time to support myself totally independent of my parents who have far worse credit than I. Since I've had my current card for 3 years will I really be required to provide a proof of income? If so that’s just what America needed -- taking away and restricting the rights of adults because a few are irresponsible.

CU Response: It is CU's position that everyone should be underwritten when it comes to credit. That being said as this next college summer and fall semesters start will be the last open season on college campuses for credit card companies so BEWARE. After February, if you are 21 and over when the law goes into effect DON'T co-sign for your friends.

This provision is not retroactive. If you are under 21 and currently have a credit card you will not be subject to the new provision with respect to your current card. If you apply for a new card, you will have to show income and/or obtain a cosigner.

4. Increased Interest Rates

Lawrence asked: My credit card company raised my rate today by over five percent after being a customer for over 25 years. I guess I can expect the rest of them to follow suit. I do not understand the nine month delay, I am sure that they had everything written up just waiting for the bill to be signed into law last week. I this what they (credit card companies) were warning us about?

CU Response: The fact that credit card companies are permitted to change rates and add fees whenever they want for any or no reason at all is precisely the problem that this bill will fix in the future.
Good consumers, who pay on time and are longtime cardholders, have shared their stories with Consumers Union for over a year now, telling us about how their interest rates have gone up suddenly and for no reason at all. Stories like these persuaded Congress to finally step in and pass a law that provides real protection.

5. Delayed Effective Date

Brett asked: The law should have taken affect immediately. I have already received notices from 2 CC companies stating that my interest rate will increase by 7-8% APR on Jan. 1, 2010. When I call to inquire further, they have stated that the increase is for all of their card holders.
The law still allows the companies to increase the rates before the bill takes affect and doesn't regulate what the APR is set at.

Cameron Asked: This bill may have good intention. Can the credit card companies still (banks) raise rate until February 2010 on your present balance?

CU Response: Unfortunately card companies are permitted to raise rates on your present balance until the effective date. As you mention these protections do not go into effect until next February 22, 2010, despite great efforts to get this law implemented sooner.

In the end Congress decided to give the card companies nine months, which is a slight improvement from the Federal Reserve Board’s July 2010 implementation date.
But during this waiting period, you will have a chance to influence certain aspects of the law. Mainly, the Federal Reserve Board must issue regulations regarding the size of penalty fees. We all will have a chance to write to the Board telling them our stories about unfair penalty fees to ensure that they adopt a protective standard. Check back as we will have more information in the coming months.

6. Double Cycle Billing

Joe asked: If you pay your credit card on time, even before due date, and....in error you wrote your check for one dollar less.....next month your interest fee is charged on the full original amount due, not for a dollar. Will that now change.....? I doubt it.

CU Response: Actually Joe, you are in luck. The new law prohibits card companies from imposing a finance charge on any portion of a balance that was repaid within the current billing cycle.
So let's say last month you paid off your balance in full. But this month you paid off only $75 of your $100 balance. Under the new law, the card company can only charge you interest on the $25 you did not pay. See the source: page 5, Sec. 102 of the CARD Act.

7. Due Dates

Frank asked: Did they fix my pet peeve? I hate it when credit card bills are sent out with due dates on saturdays. They don't process the payment on the due date, and will charge for a late payment when they get around to posting it on Monday (or Tuesday).

Does the new law require them to actually assign a due date on a processing day, or if they put the due date on a non-processing day to make the effective due date the next business day? Thanks!

CU Response: To answer your questions about due dates. The law requires that due dates be set for the same day each month. So no more confusion.

If the due date falls on a weekend of holiday, your payment will not be considered late if it arrives to the company on the next business day. Also, the card companies must send your bill at least 21 days before the due date, so you will have sufficient time to pay.

8. Deferred Interest Promotional Plans

Bob Asked: How does the highest interest first policy affect zero interest deals? I bought my last computer on a 1-year no interest plan (and paid it off in 5 months) just because 0% is a pretty good rate. While I was careful to charge _nothing_ else on the card, some stores might gleefully put your payment onto smaller charges just to suddenly hit you with 27% back interest on the large ones.=

CU Response: Regarding 0% interest deals, the new law helps ensure that you pay off those balances in time to avoid losing the promotional 0% rate.
Under the law card companies are required to allocate your entire payment, above the minimum payment, to your deferred interest balance during the last two billing cycles before the promotional period ends.

9. Gun Provision

Patrick asked: There was much discussion about a provision that was tacked onto this bill that would allow licensed gun owners to carry loaded, concealed weapons in National Parks (or something to that effect). Does anyone know if that provision made it through to the final bill or if it was removed?

CU Response: The provision allowing concealed weapons in National Parks did make it into the law, though Consumers Union played no part in supporting this provision.