Credit card law helped millions of customers on Monday, as banks are unable to jack up interest rates. The law is in order to hold back blatant maltreatments but leaving loopholes that may catch the consumer off guard.

"Today is a great day for anyone who has a credit card in their wallet", said Rep. Carolyn Maloney an author of the legislation to the reporters.

"The rules... end predatory lending practices of credit card companies that seem to have lost all sense of decency in favor of greed and profits at any cost", added Sen. Robert Menendez, who also helped draft the law.

Earlier the credit card companies were allowed to scramble interest rates at their discretion, even if cardholder payments were current. According to a study by the Pew Charitable Trusts, retroactive rate hikes and late-payment penalties cost at least $10 billion per year, to U. S. consumers.