In addition to the new Credit Card Bill of Rights that have recently passed through Congress, the U.S. Federal Reserve recently announced further changes they want to make in order to offer consumers more protection. In December of 2008 the Federal Reserve endorsed a new series of mandates that blocked issuers from treating card holders unfairly. The new proposals would amend the current regulations to properly incorporate the new credit card law.
Federal Board Governor, Elizabeth Duke, released a statement proclaiming that "The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts," and are needed as "... another step forward in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly."
Credit card holders will benefit as the changes ensure:
- Block rate increase spikes ensuring that promotional and introductory rates are protected for a full year
- Existing credit card balances can not legally experience a rate increase
- Those under the age of 21 must either get a co-signer or prove their ability to pay back debt to qualify for a credit card
- Consumers would need to be notified of any additional fees that would be caused by exceeding their credit limit
- Subprime credit card holders would be notified of all additional fees upfront
- The banning of dual cycle billing methods preventing creditors from increasing rates based on previous charges
The process of implementing these must-needed revisions have been a long time in the making and consumers who became victims of lenders trying to increase their profit margins. The bottom line is that you will no longer be at the complete mercy of your credit card providers and ultimately will be able to keep more of your hard earned resources to yourself as your credit card bills and expenses will become more easily manageable.
Prior to these changes taking affect, credit card providers have been working extremely hard at collecting as many fees and rate increase from their cardholders as possible.
What do you feel about the new changes that are set to take place? Have you been unfairly treated by credit card issuers trying to flush out their bottom line before the laws take place?
