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