The major changes of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 will impact the relationship between credit card companies and American consumers.The new regulations went into effect Monday and require credit card companies to give more notice on interest rate and fee increases, more time for consumers to make payments and more information about debt on monthly statements.”For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs,” President Obama said in a Feb. 22 White House news release. “These new rules don’t absolve consumers of their obligation to pay their bills, but they finally level the playing field so that every family and small business using a credit card has the information they need to make responsible financial decisions.”Emily Burris, coordinator of the Student Financial Management Center, said the new changes promote financial literacy and debt protection for consumers.Under the new regulations, credit card companies must send consumers a notice 45 days before increasing interest rates or fees. The payment deadline for consumers was also extended from 14 days to 21 days after the bill is postmarked.Frances Lawrence, human ecology professor who teaches a personal finance course, said the new rules will limit how credit card companies make profits. She said lenders will most likely add new, higher fees to balance that loss — a disadvantage for consumers.The act also created new protections for college-aged consumers.”Under the new law, credit card issuers cannot give credit to anyone under the age of 21, unless that person has a cosigner or they can show proof that they have sufficient income to repay their credit card debt,” Lawrence said.The cosigner, which is usually a parent, has equal liability for the payments, Lawrence said. Credit card companies are not allowed to offer gifts to entice students to apply for credit or to advertise within at least 1,000 feet of college campuses.Burris said the changes will help college students avoid debt by elongating the credit card application process.According to the 2009 Sallie Mae National Study of Usage Rates and Trends, 84 percent of undergraduate students had credit cards in 2008, which increased from 76 percent in 2004.The Student Financial Management Center located in the basement of Coates Hall, which officially launched in August, is available to help students make financial decisions, Burris said.”We sit down with students and talk to them about their financial goals, how to budget and how to pay off debt,” she said. “The new center will provide students with financial literacy that’s been missing on college campuses everywhere.”Lawrence said students can have trouble getting jobs, loans and renting real estate if they overextend their credit.”I see nothing wrong with college students having a credit card as long as they use it appropriately and stay within their means,” she said.—-Contact Mary Walker Baus at [email protected].