Credit-card gotchas
Even after federal reforms, plastic can still be perilous
This article appeared in 
The credit-card landscape has changed tremendously in the past year. The Credit Card Act of 2009 is now in full effect, providing consumers with protections against many abusive practices by card issuers. And consumers are carrying less debt, with median balances of $3,793, $1,100 lower than in 2009, according to a July survey by the Consumer Reports National Research Center.
The survey showed a slightly lower level of dissatisfaction with credit cards than last year. But credit cards remain one of the lowest-rated services we've ever analyzed; only 45 percent of respondents said they were completely or very satisfied with their cards. And 16 percent said they had been treated unfairly by their card issuers (down from 21 percent a year ago).
Despite some positive changes, there's still plenty of peril out there. Among other reforms, the card act bars issuers from raising rates in the first year or on existing balances unless your payment is 60 days late. Banks can still impose annual fees, slash your borrowing limit, cancel your account without notice, and raise your minimum payment. In our survey, 47 percent complained about such experiences.
In July, several consumer groups, including Consumers Union, the nonprofit publisher of this magazine, sent a letter to the Federal Reserve listing potential violations of the law. In one case, Citibank was cited for failing to provide 21 days between a statement's mailing and due dates. Bank of America was cited for failing to disclose its penalty interest rate.
