In view of the highly advancing dependence of the people on the credit cards that may prove harmful, U. S. President Barack Obama has signed a legislation.

The legislation will be putting regulations on the industry, prohibiting some of the most notorious practices.

The law recommends the credit card companies to give the customers an advance notice of significant changes in the terms of their accounts. This will give the customers complete rights to close their accounts if they do not find the changes suitable.

With the introduction of the reforms, the credit card companies would no longer be allowed to charge a fee when the customer exceeds his credit limit.

The law ensures that the card issuers will be giving a 45 days' notice before raising interest rates, changing certain fees, such as annual fees or cash advance fees, or making other significant account changes.

Also, in monthly statements, the customers will receive an explanation of how long it will take to pay off their balance if they make the minimum monthly payment.

Recently, a number of credit card companies have reduced the credit limits for thousands of credit cards.