Credit card companies are raising rates on cardholders according to a study by BillShrink. BillShrink is the independent free online service that gives personalized savings recommendations by matching people with the best cards available on the market.

BillShrink's findings come on the eve of the Credit CARD (Card Accountability Responsibility and Disclosure) Act 2009, which, on August 20th, requires issuers to provide cardholders with a 45-day notice of annual percentage rate (APR) changes and mail credit card statements 21 days before the bill is due, rather than the current 14-day notice. Cardholders will have to wait until February 2010 for the remaining rules to go into effect: applying payments towards highest interest rate balances first, the elimination of double-cycle billing and an end to universal default rates. Since this legislation impacts creditors' profits, it appears that credit card companies are raising their rates to compensate.

From January to July 2009, BillShrink reviewed more than 150 credit cards to uncover changes in fees and rates:

- Purchase rates are up nearly 20%

- Balance transfer fee maximums have increased 34% (from a maximum average of $94 in January to maximum average of $126 in July)

- Issuers have not changed their rates equally

- Issuers that have changed their rates the least include American Express and Bank of America

- Issuers that have increased rates the most are Capital One, US Bank, Discover and Citi

- Capital One has increased purchase and balance transfer rates 50%

- US Bank has increased purchase and balance transfer rates 33%

- Discover has increased purchase and balance transfer rates 30%

- Citi has increased purchase and balance transfer rates 27%

Commenting on the CARD Act 2009, Peter Pham, CEO of BillShrink, said: "This legislation is a huge step in the right direction as Congress lifts the veil on many of the complex practices that have taken their toll on American's wallets and subjected them to unfair fees. Similarly, BillShrink's lasting goal is to save people money by shedding light on credit card fee structures and simplifying the process of selecting the best credit card for an individual's needs."