New Credit Card Rules

The Federal Reserve Board has announced new rules to protect consumers who use credit cards from a number of costly practices. Credit card issuers must comply with most aspects of the rules beginning on February 22, 2010. Among other things, the rule will:
  • Protect consumers from unexpected increases in credit card interest rates
  • Prohibit creditors from issuing a credit card to a consumer who is younger than the age of 21 without consent or the ability to make the required payments
  • Require creditors to obtain a consumer's consent before charging fees for transactions that exceed the credit limit.
  • Limit the high fees associated with subprime credit cards.
  • Ban creditors from using the "two-cycle" billing method to impose interest charges.
  • Prohibit creditors from allocating payments in ways that maximize interest charges
Consumers can learn more about changes to their credit card accounts by accessing a new online publication: "What You Need to Know: New Credit Card Rules." It explains key changes consumers can expect from their credit card companies as a result of the new rules.

For more information about the new rules, including the official press release, visit Federal Reserve.
Share on :
New Credit Card Rules
New Credit Card Rules
Reviewed by jembe
Published :
Rating : 4.5