When Paying Your Bill on Time Isn't Enough

This week the Federal Reserve will vote to approve sweeping changes that could help people like Tommy Newsom, who has found a better rate elsewhere and is in the process of leaving Bank of America.

"The most important thing the Fed will do is say there will be no more retroactive interest rate hikes unless a consumer has been at least 30 days late," Mierzwinski said. Other changes include requiring companies to allow sufficient time to make payments, and reducing or eliminating some fees.

For now, the House has passed a bill with a credit card holders' bill of rights, but the Senate has not.

The banks say self-regulation has already eliminated some credit card practices that were considered abusive, but increased regulation could lead to further reductions in the availability of credit.

"It will reduce some fees, but it will also provide a better understanding, a clearer understanding between the consumer as well as the credit card lender so you avoid those gotcha moments going forward," Talbott said.

Talbott adds that banks have already taken steps to eliminate some credit card practices that were considered abusive but warns that increased regulation could lead to further reductions in the availability of credit.

But consumer advocates want even more protection. In Washington, the House has passed a bill with a credit cardholders' bill of rights, but the Senate has not.

"If the Fed does this, that's a major step," Mierzwinski said. "We're hoping Congress will then adopt the rule as a law because the law is more permanent."