What are the consequences of new credit card rules?

According to a survey conducted in February 2009, most of the consumers are reporting that credit card companies have increased the interest rates on outstanding credit card balances. Moreover, most of the credit card companies are charging annual fees on credit card offers. Though new credit card rules can be helpful for consumers to a certain extent, yet these will come into effect not before July 2010. However, the consumers have already started experiencing the consequences of new credit rules.
Not only the credit card companies are increasing the interest rates on outstanding balances, but also lowering credit limits, changing due dates and increasing the minimum monthly payable amount; they are also scaling back their reward programs and closing their accounts. The industry experts are expecting that the credit card companies will continue taking these steps till the new laws come into effect. One of the reasons for this behavior may be that the credit card companies are anticipating loss when new rules will come into effect.
Therefore, they are trying to make profit as much as they can. Most of the companies have increased the cash advance and balance transfer fees from 2% to 3%; a few of them are raising fees to as high as 4%. Foreign transaction fees have also been increased by 1% on all business operations you make outside United States. Foreign transaction fees are also charged if you go for a vacation abroad.
In spite of all adverse consequences of new credit card rules, industry experts hope that some credit card companies will do the right thing. According to experts, the companies will soon compete with one another on the basis of their transparency. The competition will focus on which company is offering more clear set of terms to the consumers, which are easily understandable.