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While the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 was signed with the intention of bringing relief to American consumers, The Coloradoan found that some consumers misunderstood the new legislation and, as a result, now find themselves in debt.

The act, which is aimed at restricting abusive practices by credit card issuers, took effect on February 1, 2010. Because companies can no longer hike interest rates and penalty fees on a whim, some consumers have been under the assumption that their interest rates can’t be raised at all. The Coloradoan notes that while the bill provides new protections, it doesn’t guarantee that consumers will be immune to new credit card company gimmicks.

Because card issuers are now on a tighter leash, they’ve been forced to get creative in finding ways to work around the new restrictions. The law has put general limitations in place, but companies seem to find more loopholes every day. According to The Coloradoan, the most common tactic taking consumers by surprise is the hiking of interest rates after the first year. Bill Hardekopf, CEO of lowcards.com, feels that this is perhaps the biggest misunderstanding of them all.

“There is a misconception out there that interest rates can’t go up because the CARD Act passed, and that is not true,” Hardekopf told the newspaper. “They can go up. What the credit card act did restrict is [companies] from increasing rates on a new card for one year.”

Credit card rates have increased since the act went into effect, but analysts aren’t sure whether this is due to current economic factors or the new legislation. Regardless, misconceptions can result in harm to a consumer’s finances.

Ultimately, consumers have to make responsible decisions regarding their debt before they’ll see any signs of improvement in their finances. While the Credit CARD Act’s actual effect on the credit card industry may not have been clear to some consumers, it’s still the consumer’s responsibility to educate him- or herself on how the new legislation affects credit card holders.

As a credit card holder, you should take a pro-active approach to protect yourself from the loopholes that credit card issuers continue to find. Companies are required to inform you of changes to your lines of credit, interest rates, and other fees. You’re advised to hold on to any and all letters from your credit card companies to keep track of rate fluctuations and to determine how any such changes will affect your finances.

Staying on top of changes to rates, fees, and other credit card clauses can also help you better manage your credit behavior. Reviewing statements and factoring credit card company changes into your budget can help you maintain a responsible, on-time payment pattern. Consumers with a responsible credit history tend to earn higher credit scores and are therefore more likely to qualify for affordable interest rates on loans and lines of credit in the future.

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