On Thursday the Federal Reserve released new rules regarding consumer credit cards. The protections look good to me. Here is a brief outline of what to expect in 2010.
- Credit card rate increases will only be on future balances. Any purchases you already made are locked in at your old rate. Currently a rate change impacts your current balance.
- Banks will be required to give 45 days notice before a rate change, an increase over the 15 days now required.
- Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay.
- Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account.
- Unfairly computing balances in a computing tactic known as double-cycle billing.
- Unfairly adding security deposits and fees for issuing credit or making it available.
- Making deceptive offers of credit.
