Fed pursues tough new U.S. credit card rules

[Joanne98]

Source: Reuters

WASHINGTON (Reuters) - The U.S. Federal Reserve on Tuesday proposed tough new credit card rules to protect consumers from potentially costly practices by lenders and moved to implement legislation enacted in May.
"This proposal is another step forward in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," said Fed Board Governor Elizabeth Duke said in a statement.

The proposals, issued for public comment, represent part of the Fed's implementation of the Credit Card Act, which was signed into law by President Barack Obama in May.

The Fed adopted final rules prohibiting unfair credit card practices in December 2008. The proposals released on Tuesday amend those regulations to incorporate provisions in the new credit card law.

"The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts," Duke said.

They would protect consumers from unexpected increases in credit card interest rates by generally prohibiting a rate rise in the first year after an account is opened, and increases in a rate that applies to an existing car balance.


Read more: http://www.reuters.com/article/ousivMolt/idUSTRE58S3UI20090929

[CountAllVotes]

1. big f'ng deal

>>They would protect consumers from unexpected increases in credit card interest rates by generally prohibiting a rate rise in the first year after an account is opened, and increases in a rate that applies to an existing car balance.

Why should consumer's have to be protected from this sort of thing, esp. if it is only a protection for ONE YEAR? :mad:

Note to Bernanke: I really wish you had not been re-appointed!

:dem: :kick:

[WCGreen]

2. You should have heard them on CNBC when they were discussing

preventing anyone under the age of 21 with getting a Credit Card W/O a co-signer.

Hey, I got along just fine at OSU for three years without a credit card.

But to listening to these guys, you would think it's the end of the world as we know it...

[undeterred]

7. The credit card companies show up at freshman

orientation at colleges- giving away gifts with the sign up for a credit card. To young people just out on their own for the first time with no job or low paying part time jobs. They should require a parents signature, so somebody else is looking out for the student. Nobody should graduate from college with bad credit.

They didn't do this when I was in school and I'm glad.

[FarCenter]

8. The college entrance exams should include a section on financial literacy

Interest rates, compounded interest rates, present worth of an annuity, annuity for a future worth, etc.

Along with a requirement to do a 1040 long form for a moderately complicated self-employed person's tax return.

[Matariki]

11. Nobody should graduate college with crippling debt either.

And by that, I mean college loans in the tens of thousands. If this were a civilized, first-world nation...

[MannyGoldstein]

3. Bankers Get Mega-Bonuses From Mega-Bailouts

The rest of us get scraps.

[RKP5637]

4. AGREE!!! I'm still annoyed by mega-bonuses and the inference that these guys...

are the only ones that can do the job. I just absolutely disagree with that BS. I also still wonder what ever happened to the Sherman Antitrust laws. To me, many of these corps. are basically gov. endorsed monopolies.

[pattmarty]

5. You know, when the Mafia had this business sewed up they could......................

........break your leg or beat the shit out of you for not paying, BUT THEY ONLY CHARGED YOU 20% interest!!!!!!!! Talk about shysters, goons or thieves, these fucking credit card companies today are, in my opinion as bad as a child molester. They have absolutely no morals and could give a shit about their "customers".

[RKP5637]

6. WELL SAID!!! RIGHT ON TARGET!!! n/t

[jmowreader]

9. Someone at the Federal Reserve will be caught screwing a hooker before 11/1/2009

Prohibiting increases in existing balances is going to completely change the way credit card companies operate, so obviously whoever proposed it has to be Spitzered.

Next thing you know, they'll be required to send out statements with due dates AFTER the bill finds its way into your mailbox. The horror!

[Matariki]

10. 'Tough new rules' would cap interest at something less than loan shark rates.

Wake me when THAT happens...

[truebrit71]

12. But let's make sure to give the CC companies 12 months notice so they can fuck everyone over FIRST..

..you know, like they did with the most recent "consumer protection" legislation...

My rates have sky-rocketed in the past few months..never late, never over the limit, always paid more than the minimum...

Bunch of ball-washing bastards...all of them...:grr:

[BrendonAsh]

13. Card Act Explained

I have been looking for a good explanation of what exactly the CARD ACT will do and won't do. It looks like it has so many loop holes that not much will change at all.

Here is the actual CARD Act.

And here is the CARD Act Explained in Laymens Terms

[No Elephants]

14. They've already gotten away with murder anyway. This is putting a broken lock on the barn door

after the horses ran off.