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Fed Proposes New Credit Card Rules

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By Admin on May 05, 2008 9:21 AM

The Federal Reserve Board has approved a plan that would protect consumers from the unfair billing practices of credit card companies and banks.

Among the reform measures announced by the Fed on Friday, consumers would be protected from unexpected interest rate increases on pre-existing credit card balances, credit card companies would need to allow for 21 days between the mailing of statements and the payment due date, and institutions would be prohibited from using payment allocation methods that maximize interest accrual. Reuters reports that the Federal Reserve Board -- along with the U.S. Office of Thrift Supervision and the National Credit Union Administration -- hope to have a final rule in place by the end of 2008.