Federal regulators today issued credit card rules a major step to change some of the most unfair and unlawful practices. Unfortunately, the application of the rules will not take effect for 18 months and in several key respects, but does not go far enough to protect consumers.
“Protecting consumers from costly credit card practices that drain their wallets should always be a priority,” said the Center for Responsible Lending President Michael Calhoun. “But with a weak economy is showing signs of improvement, the consumer should be able to continue the hard-earned money now and not a half years from now.”
The new credit card rules of the Federal Reserve Board, the Office to Monitor savings and credit of the National Union Administration will not take effect until July 1, 2010. And, while better than the status quo, the rules still allow credit card issuers capriciously imposing higher interest rates and hidden costs. Regulators and legislators should do more to curb these practices in the coming new year.
In a separate action, the Fed today also asked to comment on two alternative proposals that are intended to better protect consumers against abuse in the rates of unauthorized overdraft.
The best of the two alternatives that require banks to obtain permission from customers before charging the overdraft fees on some ATM and debit card transactions. While the broader protection would still be needed, but this alternative is beginning to give consumers a real choice about when and how they are accused of short-term loan. The other alternative would not change current practice.
Tags: Credit Card, Rules
Leave a Reply
You must be logged in to post a comment.