Credit card debt in the United States is a record $1 trillion. Almost half of American families currently carry a credit card balance that is, on average, $7,300.

One out of every five people carrying credit card debt pays an interest rate above 20 percent.

Last year credit-card companies imposed $19 billion in penalty fees — a figure that accounted for nearly half of their $40.7 billion profits.

These often hidden fees have risen by more than 50 percent since 2003, employing practices the Federal Reserve has called “unfair, deceptive, and anti-competitive.”

The good news is that, after years of being blocked by special interests and Wall Street banks, a new law will put an end to practices that have unfairly gouged individuals and families.

The recently signed Credit Cardholder Bill of Rights is one of the most significant consumer protection laws enacted in over a decade, and I am proud to have supported it.

Key features of this important legislation, which should eliminate many unpleasant surprises for hardworking Central Texans:

* It will block credit card companies from retroactively increasing the interest rates on customers’ existing balances unless the borrower is at least 60 days late paying a bill.

If a cardholder is 60 days late, but makes payments on time for six months, then the original interest rate must be reinstated.

* Credit card companies must now give 45 days notice on all interest rate increases, so consumers can pay off their balances or shop for a better deal.

* To protect consumers from due-date gimmicks, the new law will require credit card companies to mail bills 21 days before the due date.

Gone is the practice of charging interest on already repaid debt, which unfairly penalizes those who responsibly pay their bills.

* It requires that payments first be applied to the credit card balance with the highest rate of interest, not the balance that is hardest to pay off. 

* Those under 21 must have a parent or guardian co-sign their application, to have a credit card on their own.

* Promotional rates offered to woo new customers must last at minimum six months, and rate hikes are no longer allowed in the first 12 months after a new account is opened.

* Credit card agreements be written in a readable font to put an end to terms hidden in fine print. The 45-day requirement to notify cardholders of interest rate increases and the requirement to bill consumers 21 days in advance will become effective by September.

While it means important protections to prevent credit card companies from unfairly taking advantage of working families, it is vital that consumers exercise personal responsibility, and pay their bills on time to avoid getting over extended with their debt.

However, as they do, this important legislation finally begins to level the playing field for them.

Congressman Chet Edwards represents District 17, including Waco, and serves on the House Financial Services Appropriations Subcommittee.