Credit card companies reined in ... sort of

It's about time - time for credit card companies to be reined in, that is.

On Thursday, some initial provisions of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 kicked in. They're badly needed.

Specifically, credit card issuers are now required to notify customers 45 days -- instead of 15 days -- before changing interest rates or other significant terms of an account. They also must make sure customers have 21 days between the time statements are sent out and the payment is due, up from 14 days under existing rules.

Many of us lean too heavily on these small pieces of plastic, and if you use them too much it's pretty easy to dig yourself into a deep financial hole. Credit card companies have made matters worse by arbitrarily raising interest rates, charging hefty late fees and offering their products to students who have yet to learn how to manage their finances.

In essence, they're lying in wait, hoping we'll miss payment deadlines so they hike up their interest rates. And many consumers just aren't on top of this so they fall victim to late fees and a host of other problems.

Hopefully, the new rules will make a difference. But some card issuers have reportedly made an end run around the provisions by notifying everyone that their interest rates are now variable instead of fixed.

Go figure.

"That way they don't need to notify you each time the rates change, because they'll be changing all the time," said Babette Heimbuch, CEO of First Federal Bank of California.

Other provisions of the new legislation are set to take effect early next year. One says credit card companies will no longer be able to raise interest rates on existing balances if you've been paying on time. Another says they won't be allowed to raise rates the first year an account is open unless a time-limited promotional rate is explained up front, and a third will require these companies to review accounts every six months if they do hike rates, to see if they should lower them again.

This all sounds pretty good to me.

But consumers also need to take some responsibility and live within their means. That means you shouldn't be using a credit card to buy big-screen TVs you can't afford, or to take an expensive cruise to Alaska if that's far beyond your means.

I realize these companies have to make money just like the rest of us. I get that. But they shouldn't be allowed to impose punitive fees and policies on the very people who are using their products.

That's just ... un-American.