Below are the main elements of the new law of interest to credit card consumers:

Bans Unfair Rate Increases: Financial institutions will no longer raise rates unfairly, and consumers will have confidence that the interest rates on their existing balances will not be hiked. 

• Bans Retroactive Rate Increases: Bans rate increases on existing balances due to "any time, any reason" or "universal default" and severely restricts retroactive rate increases due to late payment.
• First Year Protection: Contract terms must be clearly spelled out and stable for the entirety of the first year.  Firms may continue to offer promotional rates with new accounts or during the life of an account, but these rates must be clearly disclosed and last at least 6 months.

Bans Unfair Fee Traps:

• Ends Late Fee Traps: Institutions will have to give card holders a reasonable time to pay the monthly bill – at least 21 calendar days from time of mailing.  The act also ends late fee traps such as weekend deadlines, due dates that change each month, and deadlines that fall in the middle of the day.
• Enforces Fair Interest Calculation: Credit card companies will be required to apply excess payments to the highest interest balance first, as consumers expect them to do.  The act also ends the confusing and unfair practice by which issuers use the balance in a previous month to calculate interest charges on the current month, so called "double-cycle" billing.
• Requires Opt-In to Over-Limit Fees: Consumers will find it easier to avoid over-limit fees because institutions will have to obtain a consumer’s permission to process transactions that would place the account over the limit.
• Restrains Unfair Sub-Prime Fees: Fees on subprime, low-limit credit cards will be substantially restricted.
• Limits Fees on Gift and Stored Value Cards: The act enhances disclosure on fees for gift and stored value cards and restricts inactivity fees unless the card has been inactive for at least 12 months.

Plain Sight /Plain Language Disclosures: Credit card contract terms will be disclosed in language that consumers can see and understand so they can avoid unnecessary costs and manage their finances.

• Plain Language in Plain Sight:  Creditors will give consumers clear disclosures of account terms before consumers open an account, and clear statements of the activity on consumers’ accounts afterwards.  For example, pre-opening disclosures will highlight fees consumers may be charged and periodic statements will conspicuously display fees they have paid in the current month and the year to date as well as the reasons for those fees.  These disclosures will help consumers make informed choices about using the right financial products and managing their own financial needs.  Model disclosures will be updated regularly based on reviews of the market, empirical research, and testing with consumers to ensure that disclosures remain clear, useful, and relevant.
• Real Information about the Financial Consequences of Decisions: Issuers will be required to show the consequences to consumers of their credit decisions. 
  
  • Issuers will need to display on periodic statements how long it would take to pay off the existing balance – and the total interest cost – if the consumer paid only the minimum due.
  • Issuers will also have to display the payment amount and total interest cost to pay off the existing balance in 36 months.

Accountability: The act will help ensure accountability from both credit card issuers and regulators who are responsible for preventing unfair practices and enforcing protections.

• Public posting of credit card contracts:  Today credit card contracts are usually available only in hard copy and not in plain language. Now issuers will be required to make contracts available on the Internet in a usable format.  Regulators and consumer advocates will be better able to monitor changes in credit card terms and evaluate whether current disclosures and protections are adequate.
• Holds regulators accountable to enforce the law:  Regulators will be required to report annually to the Congress on their enforcement of credit card protections
• Holds regulators accountable to keep protections current:
  • Regulators will be required to request public input on trends in the credit card market and potential consumer protection issues on a biennial basis to determine what new regulations or disclosures might be needed.
  • Regulators will be required either to update the applicable rules, or to publish findings if they deem further regulation unnecessary.
     

• Increases penalties:  Card issuers that violate these new restrictions will face significantly higher penalties than under current law, which should make violations less likely in the first place.

Cleans Up Credit Card Practices For Young People at Universities.  The act contains new protections for college students and young adults, including a requirement that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.

Babymint is the flagship product of the [tag]Vesdia Corporation[/tag]. The underlying “savings engine” technology of the [tag]Babymint program[/tag] is licensed to other private label names such as The Education Plan and Baby Center.

The major selling points for the [tag]Babymint 529[/tag] [tag]savings club[/tag] are: 1) earned rewards can be directed to almost any [tag]529 plan[/tag] (including ones already set up) and, 2) there is no fee or requirement to have the affiliated Babymint credit card. BabyMint provides good competition for Upromise in the area of on-line shopping rebates with nearly 500 merchants listed. To earn on-line rebates, you must shop through the BabyMint website but any credit card can be used. In the area of in-store shopping, Babymint doesn’t stack up as well. The list of in-store merchants is relatively sparse and you can only earn in-store rebates if you use the affiliated [tag]Babymint credit card[/tag].

Summary: Babymint is free and worth joining primarily for on-line shopping purposes. Rebates from on-line retailers are competitive with Upromise rebates from the same retailers so it’s a good idea to look both places for the best deal when shopping on-line.

Upromise – Join millions of families who are discovering a whole new way to save for college

Upromise is the largest and best known of the 529 savings clubs. It boasts extensive networks of both in-store and on-line merchants. Indeed, it is the only savings club through which you can expect to accrue meaningful rewards from in-store grocery shopping. Joining Upromise costs nothing and you are not required to have the CITI Upromise credit card to be a member.

You simply register up to 10 credit card numbers and five grocery/drugstore loyalty cards on the Upromise website. When you use these cards at participating merchants or buy certain brand-item products, you’ll receive a percentage share of the price as a rebate to your Upromise 529 account. Rebates vary by merchant but typically are under 10%. The fact that you can register a large number of credit cards and loyalty cards enhances your ability to effortlessly capture rewards. Additional points about the program:

• You earn rewards for purchases on some 7,000+ grocery and drugstore brand-name items, but only if you buy from stores in the Upromise network and only if you register and use the stores' loyalty card. The Upromise network of participating grocery stores is very large and includes Meijers, Kroger, Giant, Jewel-Osco, Winn-Dixie and many other large chains. If the store you frequent has no loyalty card, be sure to register your credit card on the Upromise website as both a credit card and a grocery card.
• Rewards can only be directed to 529 plans offered through Upromise. However, several good plans are offered including ones managed through Vanguard – an investment company with an excellent reputation for keeping fees as low as possible.
• Sizable rebates can be earned on some large transactions. For example, buy or sell a home through a Upromise affiliated realtor and you earn up to a $3,000 reward. Similarly, big rewards can sometimes be earned on new car purchases, home equity loans or other larger transactions.

Summary: Upromise is a free savings club well worth joining. Average rebate percentages for on-line merchants tend to be higher than for the other no-fee clubs, but lower than edexpress' (which charges a membership fee). The main advantage of Upromise, though, is the unmatched ability to earn rewards on routine in-store grocery shopping.

Once you register your cards, there is little more you need to do (other than use them). Used in conjunction with the Fidelity/MBNA 529 reward credit card, the Upromise savings club is one of the best ways to effortlessly save for college.

Not much to get excited about here. Like most of the other [tag]529 savings[/tag] clubs, [tag]futuretrust[/tag] focuses on on-line shopping rebates. The in-store rebate possibilities are quite limited. You are required to have the [tag]futuretrust MasterCard[/tag] in order shop through the website and earn rebates. On the plus side, the on-line retail network is competitive with offerings of the other 529 savings clubs.

Summary:There are better options readily available.

Baby Center is primarily an on-line retailer and information center. It bills itself as “the most complete online resource for new and expectant parents.” It also operates a loyalty program geared towards [tag]college savings[/tag].

Like the Education Plan, [tag]Baby Center[/tag] uses Vesdia Corporation’s BabyMint savings engine and retailer network under the Baby Center brandname. Unlike the Education Plan, Baby Center does not require you to have their branded credit card to be a member. Baby Center allows you to direct rewards earnings to any 529 plan, select a different investment account (e.g. mutual fund) or receive cash payment.

Summary: Not much substanative difference from the [tag]Babymint[/tag] savings program. Users of the other Baby Center services may find it more convenient to use this progam rather than Babymint. Enrollment in both programs is free so there is no reason not to join both.

Students are a major niche among creditcard users. They require credit cards to meet their books and other college material expenses. It is great debt help for students who are living away from home. To meet the overall study requirement of students, the option of student loan consolidation is available. Student cards also give them the facility of cheap insurance that includes medical help and other facilities in case of accidental death of the cardholder. Students who also work from home can use their credit cards to pay bills, makes purchases and do so much more without the hassle of going out.

[tag]The Education Plan[/tag] savings club uses [tag]Vesdia Corporation[/tag]‘s [tag]Babymint[/tag] savings engine and retailer network under a different name. However, there are two important differences between this plan and Babymint, neither of which is an advantage: 1) you are required to have The Education Plan Advantage credit card in order to participate in the savings club and, 2) unlike Babymint, you can only direct rebates to [tag]529 plans[/tag] offered through The Education Plan.

Summary:Why join this program when you get the same benefits through [tag]Babymint[/tag] without the limitations?