The unfair credit card rate hikes was just one of the issues why the new credit card law was formed and implemented.  Although advocates for consumer rights are still seeking for much more protective set of laws and say that the new law is insufficient or will produce more difficulties to people who are already credit card holders or seeking to get credit cards.

Currently, borrowers who are believed as “risky” suffer the most due to the high interest rates and fees being slapped on them.  A few of the reasons lenders provide is that risky customers are the ones who have a higher probability to default on their loans at an earlier stage and raising fees and interest rates are their method to get the most out of their customer.  Several restrictions against this type of practice are also included in the new law but there are also some resurrected regulations which banks can “modify” to their advantage.

Annual fee that was removed from credit card fees a decade ago have been resurrected.  Even if a sizeable percentage of lenders in the US have added annual fees to their borrowers bills even before the new law took effect, this is now something that all credit card consumers will have to deal with from now on. 

Some issuers of credit cards have also cooked-up other means to rake in additional revenues.  One of which is known as inactivity fee which can amount up to $20 for those who have refrained from using their credit card for half a year.  Another one is known as processing fee where for every paper statement processed, $1 is charged to the customer.

Other fees that already exist like balance transfer fees have also been raised.  From 3 percent to 5 percent, one particular financial institution, JPMorgan Chase, now charges customers who wants to lower their rates by transferring their current balance from another bank or financial institution.  Customers who want to do balance transfers have no choice but to pay since doing the balance themselves would mean that they have to close the existing one which will not be acceptable for the new provider.

Getting new cards will now have a 13.6 percent interest rate compared to last year’s 10.7 percent.  The increase in base rates is also expected to rise later on and this would allow lenders to raise variable interest rates.

Lots of credit card holders may also experience a harder time in keeping credit cards and getting new credit cards will also be the same.  A more cautious approach is being done by lenders when it comes to granting credit cards and are doing all sorts of measure to reduce risks.  Due to the economic slump, not only did banks tighten the way they grant credit, but they also devised plenty of schemes to drive their credit card revenues up.

Credit limits were also cut for millions of people.  An estimated available credit amounting to $1 trillion is said to have been eliminated by doing this.  California and Florida are two states that were the most subjected to credit limit cuts due to the high unemployment rate and housing crisis. 

Most credit card providers are now sending credit card solicitations only to those they know are good candidates.  Compared to year 2000 up to 2008 which had an average of 2.3 billion solicitations, only a quarter of this figure have been recorded in 2009.

The new law has provided a few restrictions too and a large amount banks will definitely discover some ways to get around it.  This is an additional factor why banks will be more reluctant to issue credit cards especially to those who have low credit ratings and low FICO scores.  Credit card offerings will be more likely targeted to people who have a good credit score or have other banking activities such as savings accounts.