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Fed Proposes New Credit Card Rules

The Federal Reserve Board has approved a plan that would protect consumers from the unfair billing practices of credit card companies and banks.

Among the reform measures announced by the Fed on Friday, consumers would be protected from unexpected interest rate increases on pre-existing credit card balances, credit card companies would need to allow for 21 days between the mailing of statements and the payment due date, and institutions would be prohibited from using payment allocation methods that maximize interest accrual. Reuters reports that the Federal Reserve Board -- along with the U.S. Office of Thrift Supervision and the National Credit Union Administration -- hope to have a final rule in place by the end of 2008.

• Federal Reserve Board Press Release on Credit Card Practices
• Reuters: Fed Backs Credit Card Reforms
• Chicago Tribune: U.S. Aims to Rein in 'Unfair' Credit Cards
• Avoiding Credit Card Debt (FindLaw)
• Shopping for Credit Cards (FindLaw)

Full post as published by FindLaw's Common Law on May 05, 2008 (boomark / email).