The Fed Proposes New Restrictions for Credit Cards

The Federal Reserve, acting in conjunction with the National Credit Union Administration and the Office of Thrift Supervision, recently proposed new rules and restrictions that target what they consider to be “unfair” practices currently in use in the credit card industry.

Aspects targeted by the proposed rules include:
- The length of repayment periods
- The allocation of payments
- Methods for computing balances
- Reasons for adding new fees
- Reasons for increasing annual percentage rates

Full article: Government moves to rein in unfair credit card practices

Reaction to the proposals is mixed, as it remains to be seen how many of the proposed rules and restrictions will become a reality. The changes could be finalized by the end of the year, at which time it will be easier to predict how the typical credit card user will be affected.

Make your next financial decision a knowledgeable one. Be sure to utilize the tools and resources available in our knowledge center to stay on top of your personal finances. Analyze your credit card situation with our credit card calculators or visit our credit card tips and advice center for answers to common questions related to credit cards.

Posted in News, Credit Cards, Personal Finance

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This entry was posted on Thursday, May 8th, 2008 at 7:06 am and is filed under News, Credit Cards, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.