Sunday, December 14, 2008

Fed To Rule Soon On Sweeping Credit Card Changes

Who is the Fed?
clipped from
Sunday December 14, 3:11 am ET
Fed might end surprise credit card rate hikes but restrict credit to high risk borrowers
Credit card companies could no longer boost interest rates on existing account balances if the Federal Reserve adopts new rules as written at a meeting set for Thursday.

But as proposed, the changes also could make it more difficult for millions of people with bad credit to get what's referred to as a subprime card.

The proposed changes would let credit card companies increase the interest rate only on new cards and future purchases or advances, not any current balance.

Another new Fed rule would require firms to apply any payment above the minimum to the part of the balance with the highest interest rate.

his office typically gets 15 to 25 complaints a month about the state bank
refund $4.5 million last year to New York customers as part of a settlement reached by the state attorney general claiming Premier Bankcard used deceptive and illegal tactics to market its cards
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