For years regulations on credit card companies have been quite loose and there have been much controversy among consumers who complained about hidden credit card fees and charges that had caused many consumers a lump sum of money.
After 30 years of being able to go about business in whatever manner the credit card companies pleased, which oftentimes took advantage of unsuspecting credit card consumers by raising interest rates and the like, now Federal Regulators have moved to implement new credit card restrictions on credit card companies which will take into affect next year in July of 2010. This will help to protect consumers from getting the short end of the credit card stick. (Find out all you need to know about the new laws)
In more detail the laws are being implemented to protect consumers from unsavory practices by the credit card companies and to ensure that theFederal Trade Commission Act is being adhered to. TheFederal Trade Commission Act is responsible for protecting consumers from "unfair and deceptive trade practices."
The new rules will prevent the credit card companies from:
- Allowing deceptive offers of credit
- Unjustly adding fees for issuing credit or making it available
- Placing inequitable time constraints on payments
- Charging too-high fees for exceeding the credit limit because of holds on the account
- Partaking in double-cycle billing practices
However, not everyone will benefit from the changes being implemented by the credit card company. Some exceptions to the rule are business credit cards, as they will continue to operate on a different set of guidelines and the new laws only apply to consumers.
Additionally, the terms for the new rules do not specify those returning home from military duty to be a reason for not raising rates (although this exception is currently under review).
Check out the complete story on about new credit card laws.
