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New Consumer Credit Card Rules
Consumers scored a few unexpected victories in a set of Federal Reserve rules issued earlier this week.
The Fed issued 1,155 pages of rules Tuesday telling banks how to comply with new laws regulating credit cards that go into effect on Feb. 22. In a handful of cases, in which the law was unclear, federal regulators used their discretion to go a step further to protect consumers.
One little-known practice that the Fed banned: Card issuers won't be allowed to set minimum interest rates.
"I was pretty pleased with that," said Nick Bourke, co-author of the Pew Charitable Trusts credit card study. "These floors simply didn't meet the requirements of the law."
The Fed will also prevent banks from automatically enrolling consumers in over-the-limit programs that charge regular fees. The Fed will also make it more difficult for banks to exert control over interest rates based on changing indicators, such as the prime rate.
Banking industry experts agreed that the Fed tended to side with consumers in creating the new rules implementing credit card laws.
"This demonstrates the Fed is trying to anticipate moves and err on the side of consumers," said Nessa Feddis, vice president and senior counsel for the American Bankers Association.
Abogados January 15, 2010 08:05 AM | Hipotecas | Preguntas Para Abogados
