Obama hails new credit card rules

WASHINGTON, Feb. 22 (Xinhua) -- U.S. President Barack Obama said on Monday that the new credit card rules have marked a " significant turning point" for U.S. consumers.

"The new rules taking effect today mean that credit card companies can no longer retroactively increase rates or increase rates in the first year you open an account, charge misleading late fees or use over-limit fee traps," said Obama in a statement.

"They're now required to send ample notification if they plan to make changes to the terms of your card and they must employ clear, simple standard payment dates and times," he added.

The new rules, which Obama signed into law last spring, "are an unprecedented step in my administration's ongoing efforts to strengthen consumer protections and enact meaningful financial reform," said the president.

U.S. Treasury Secretary Timothy Geithner also hailed the new rules, but adding that more such protections are still needed for U.S. consumers.

"With today's implementation of new rules, we are taking a critical step forward in our effort to protect American families by prohibiting the use of unfair retroactive rate hikes and late fee and over-limit fee traps by credit card companies," said Geithner in a statement.

"We continue to work on strengthening consumer protections and disclosure for a wide array of financial products," he added.