I'm not sure how I missed this, most of you probably already know about the Credit Card Reform Act which was signed into law back in May. But for those of you, who like me, somehow missed this bit of information, this landmark legislation will eliminate fluctuating interest rates on credit cards and curb the many other unfair practices by banks and card issuers. All I have to say is - "It's about time!" I don't know how many times I've ripped a new one for some poor customer service person who was unfortunate enough to answer the phone when I called to contest a late charge on my credit card after taking it in to the bank on the due date, only to find that it was late anyway because I didn't "get it in by 2:00 pm (eastern time), and plus it doesn't always get posted on time when you actually take it to the branch office instead of mailing it in, so actually you should have mailed it, oh. . . maybe a week ago just to make sure it made it on time." Aghhhh! And don't even get me started about the due date falling on a Sunday or a holiday, so that it's actually due two or three days earlier than the date on the bill, because as we all know (but the banks seem to conveniently forget), the bank is closed on holidays and Sundays!

The Credit Card Reform Act has banks and card issuers pulling their hair out to find other ways to collect from consumers. The National Consumer Law Center has already seen credit card companies rushing to increase interest rates before most of the reforms kick in, probably sometime early next year. So how can we beat the credit card companies and their new dirty tricks?

Consumers can enjoy the benefits of a credit card without paying the penalties, by keeping their guard up and countering the banks' tactics with some of their own. Under the new legislation, credit card issuers will still be able to charge late fees, but if the deadline falls on a weekend or holiday, you will have until the next business day to make your payment. Card issuers will also be required to send bills out at least 21 days before the due date instead of the current 14 days. One way to avoid any late fees is to set up an automatic payment notice on your checking account as a reminder to pay on time every month.

Under the Credit Card Reform Act, card issuers will no longer be able to raise and lower your interest rate willy-nilly for whatever reason happens to tickle their fancy that month. They will however, still be able to raise your rate, but not until you are 60 days late with the payment on an account, and they must give at least 45 days' notice to consumers before any overall rate hike can take effect on the account. Also, the rate hike can only be applied to new purchases and not to the existing balance. Often times, rate hike notices will come in the mail and look a lot like any other piece of junk mail or new credit card offer. So be careful and don't automatically throw mail away without checking what's inside.

You can try to fight a rate hike by contacting your bank or card issuer, remind them of your good payment record (assuming it is good), negotiate a better rate and make sure you let the customer service rep know you're willing to shop elsewhere to get that rate. I have done this myself in the past, more than once over the years, and it has worked. If your card issuer won't budge on the rate, you can shop around at sites such as Credit.com, LowCards.com, Cardtrack.com, or CreditCards.com.

In the past, credit card companies have charged one-time fees of $10 - $40 for going over your credit limit. Most companies, rather than notifying consumers when they were reaching the danger zone of going over their limit, would instead approve purchases that would push the cardholder over their limit and sit back to collect the exceeded limit fee. Cha-ching!

Under the new legislation, you will have the choice of allowing your credit card company to charge you a fee when you max out your credit, or have them automatically deny authorization for a transaction which will take you over your limit. Avoid the fee by just saying NO to a transaction that will take you over your limit. Avoid this situation altogether by being aware of what your credit limit is (and if it's been lowered recently for any reason - another reminder to OPEN everything in the mail!), and be aware of how much you are charging on your card each month. Two reasons your credit card company may lower your limit: if you don't use your plastic regularly or if your credit score has recently dropped.

Since the reforms are going to cost credit card companies a bundle in lost revenue, they are scrambling to find ways to make up those losses. Consumers may start to notice new charges in the future, such as "foreign transaction" fees for purchases made with companies outside the U.S., increased annual fees, or interest charges being applied immediately to purchases instead of the usual grace period of several weeks. We may also see a decrease in the number and types of rewards programs. To beat the credit card companies, use your debit card to get cash rather than the cash-advance feature of your credit card. Look carefully at cards that offer frequent-flier rewards and cash back on purchases, and shop around for the best ones. Don't assume that the cards with the lowest annual fees or no annual fees will have the best interest rates. Sometimes just the opposite can be true.

So, all-in-all, the Credit Card Reform Act looks like a much better deal for the consumer, although the down side may be the pandemonium it's causing in the credit card industry will create a whole new generation of clever little fees to help credit card companies squeeze everything they can out of you and me. So be aware and be smarter than your credit card company.