New Credit Card Regulations Go Into Affect In July 2010

After receiving more than 65,000 complaints on its web site, the Federal Reserve Board has taken unprecedented steps to reign in credit card issuers. The U.S. government is finally acting in the best interest of the consumer by passing sweeping regulations that are designed to root out the unfair practices that have long been the cornerstone of the credit card companies.

The 65,000 comments (we described them as complaints in the previous paragraph and we believe that to be accurate) left on the Fed’s web site is far and away the most they have ever received. It is no doubt born of the current credit crisis. This has been brewing for quite some time now and we believe that relief for the credit card account holder is long overdue.

The changes will go into affect on July 1, 2010 and will address the following issues:

  • Credit card account holders will now have a minimum of 21 days to make a payment.
  • No more ‘double-billing’ when balances are computed.
  • Card issuers will not be able to raise interest rates on current balances.
  • Limit the fees charged when credit limits are exceeded.
  • Prohibit any and all misleading offers.

Easier to read billing statements have also been mandated. Interest rates and fees must be prominently displayed. Fine print is also prohibited. They say that the devil is in the details and we have all seen the credit card companies fine print to prove it. This is where they state that they can raise your interest rates at any time they wish, for any reason… or no reason at all. That practice will end.

The regulations go further by:

  • Requiring 45 days advanced notice before making changes to terms of service.
  • Cap the upfront fee on sub-prime cards.
  • Applying any payments exceeding the minimum to the highest interest charged on the account.

It’s about time this overhaul of the credit card industry took place. For far too long lobbyists have had our elected leaders in their pockets. Now maybe fairness and common decency will be the new norm. We can only hope.

Related Information:

  1. Credit Card Statements Will Be Easier To Read Starting in July 2010 The Federal Reserve Board passed sweeping changes to the way the credit card industry operates. The new regulations will go into affect on July 1, 2010. One of the changes…
  2. New Credit Card Regulations Become Law The long-awaited credit card reform act is finally passed into law as of today….
  3. How Credit Card Grace Periods Effect You Before you apply for your next credit card be sure to check the length of the grace period. Grace periods are an often overlooked part of the credit card equation…
  4. Know Your Rights As A Credit Card Holder While Congress works on the newly proposed “credit card bill of rights“, I felt it was important that I share with you exactly what your rights as a credit card…