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.