by Joseph Kenny | 07/3/09

In a new move, JPMorgan Chase, the country's largest credit card issuer, is planning to increase the minimum payment on balance to 5% for certain customers-and with barely a month left before new credit card legislation takes effect. The increase from its current 2% level will come to an end in August according to a notice posted in June.

This means that customers who pay less than the minimum will be charged extra fees. With approximately 159 million credit cards currently in circulation, this new minimum will actually affect about 1% of its total customer base.

The change in minimum payment policy is the second measure disclosed by JPMorgan; earlier the company said that it was raising their balance-transfer fees to 5% for June. All of this hustle and bustle is being traced back to new credit card legislation that was signed in to law back on May 22.

This law imposed restrictions what sort of interest rate increases and other penalties can be issued by credit card companies. The consequences are taking the form of higher fees and lower availability of credit and fewer rewards incentives.

According to JPMorgan representative, Stephanie Jacobson, the new minimum affects "select accounts that have carried balances."

She added, "The way customers use and maintain an account helps us determine what changes to make in order to protect our customers and our company."

The Credit Card Accountability Responsibility and Disclosure Act requires that consumers receive at least 45 days' notice for any "significant" contract alterations, including increases in rates. This law is set to take effect on August 20, 2009.

JPMorgan's CEO, Jamie Dimon said back in May that the card business was the "most challenged" and the new rules could cost the bank around $500 million. First quarter losses added up to $547 million.