Plastic has lost some of its shine.

Consumers are increasingly dissatisfied with their credit cards, according to a new survey conducted by J.D. Power and Associates. The survey found customer satisfaction at its lowest point since 2007, when data tracking began.

The culprits: higher fees and rate increases. About 20% of survey respondents reported having been hit with a rate increase so far this year, double the number for the same period in 2008, and 14% of customers reported incurring late fees, up from 11% a year ago.

Those charges are making the plight of consumers with credit card debt worse. The survey found that customers carrying balances had the biggest decline in satisfaction.

Consumers struggling to manage debt aren t the only ones who ve been hurt by the recent downturn. Credit-card companies have been hurt, too, triggering some of those higher fees and shorter credit lines.

When the economy turned, not only did it impact [banks ] stock prices -- their financial situation -- but also their customers all started to suffer, so there were defaults, and there were late payments, says Bill Hardekopf, the CEO of LowCards.com, a credit-card comparison site. What credit-card issuers started to do was cut their financial risk, Hardekopf says.

New legislation passed this year is designed to offer consumers more protection. New regulations setting the notification period for rate changes and the schedule for bill payments went into effect in August, and other rules will take effect in February. Many banks are making changes to customers accounts now, before the new rules restrict their ability to do so.

Between the new regulation and the recent credit crunch, the bottom line for consumers is that credit standards are tightening banks are looking to reduce the risk of lending, and the government is trying to prevent consumers from getting in too far over their heads. That means some rude surprises for some consumers who suddenly don t have the access to credit they expected. However, consumers taking the long view should see these changes as good news, says Curtis Arnold, the founder of CardRatings.com.

We re going to be less likely to get into trouble in terms of credit card debt. We re going to have more consumer protections, Arnold says. It s going to ultimately lead to a lot better consumer experience.

Here are a few commonly reported frustrations about the credit-card industry and a few tips on how to keep them from getting to you:

Late Payment Fees

These fees are taking the biggest bite out of credit card customers satisfaction, according to the J.D. Power and Associates survey. The solution? Don t just pay your bill on time pay it early, so you can be sure it will be processed in time to avoid a fee, Hardekopf says.

Pay all your bills on time, he adds. Late payments on other bills can hurt your credit score, which could leave you vulnerable to other nasty surprises from your credit-card company.

When the CARD Act takes full effect in February, credit-card companies will be required to get a customer s permission before processing a charge that would incur an over-limit fee. The law also tightens standards on practices that make it easier to get a late fee, like changing the payment due date each month or setting a deadline over the weekend or during the middle of the day. Fees will also have to be reasonable and proportional, according to guidelines developed by the Federal Reserve, says Chi Chi Wu, a staff attorney for the National Consumer Law Center, an advocacy group that follows the credit industry.

Many consumers have had their credit limits cut in recent months, as banks try to limit their risk. Some have even engaged in balance chasing, says Arnold of CardRatings.com.

It s like cutting your credit line -- on steroids, Arnold says. The credit-card company cuts your credit line, and then every time you make a payment, it cuts your limit again, until you pay off your balance. Some consumers have had their cards declined at the register because their accounts were closed without warning.

Consumers may be able to prevent a credit limit cut by maintaining a good credit score, Hardekopf says. Do everything you can to protect your credit score, he says. In addition to paying bills on time, consumers should pay more than the minimum payment and avoid using too much of their overall credit not more than a third of the limit, Hardekopf says.

Interest Rate Hikes

The new credit-card legislation requires card issuers to give 45 days notice of interest rate changes. It is also designed to restrict other practices that have been frustrating consumers, like retroactive rate increases.

The first step in fending off a rate increase is to know what your current rate is by reviewing every statement as soon as it comes, says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling. Every day, people walk into our offices carrying grocery bags full of unopened bills, Cunningham says. Consumers should look beyond the minimum payment and due date to review the terms and conditions, she says.

If your rate does increase, you can call your credit card company and ask to go back to your old terms. The National Foundation for Credit Counseling recommends preparing for such a call by reviewing your history with the company, so you re ready to point out how long you ve been a customer and your history of paying on time. Get a free credit report and point out that your credit history makes you a customer they should want to keep.

There s no guarantee that you ll succeed in negotiating your rate back down, Hardekopf says, but If you don t call, there s a guarantee that it will stay up.

If your card company won t budge, you re still not out of options. Consumers do have the right to reject the changes in terms, Wu says. If someone s got a big credit-card debt, the right to reject changes is probably the most effective thing they can do if they re being faced with a rate increase.

Typically, if you reject a rate change, you ll have to stop using the card, and you ll be put on a plan designed to help you pay off your balance within five years. That means your monthly payment would go up. In reality, that s good news for me as a consumer, in terms of interest savings, Arnold says. You definitely want to think through that and make sure there s room in your budget for a bigger payment, he says.

Even in a tighter credit environment, it still pays to shop around for the best possible deal. You are not married to your credit card, Hardekopf says. You can shop around. You should look at a number of cards, don t just take what you get as a direct mail piece. Consumers shouldn t be passive in the face of fees and interest rate hikes, Hardekopf says. Switching to a new card is always an option.