New Credit Card Rules Approved
Federal regulators have adopted new rules for the credit card industry intended to protect consumers from arbitrary hikes in interest rates or unfair time constraints for payment.
Among other things, the rules would let credit card companies raise interest rates only on new cards, future purchases or advances, and not on existing balances.
Eric Seto, the executive director of the Louisville Asset Building Coalition, which provides debt counseling and similar services, says the rules are good news for people who have amassed a lot of credit card debt, but they won’t take the place of responsible money management.
“No matter what the rates are and what the deals are still you spend what you have, not spend what someone’s willing to loan you,” she said.
The new rules are scheduled to take effect in July of 2010.
[...] In a previous article on this subject I wrote what to expect by way of change for credit card users. To recap, The bank can still play loan shark by charging you usurious rates, the difference is come July, 2010, that’s right, more than one year away, they will have to give you notice, and will only be able to charge the usury rate, although legal, on new charges, not past balances, (before the effective date of the notice). Here is the link to an article: NEW CREDIT CARD RULES. [...]