Consumers will soon have more protection from various unfair practices from credit card issuers, as the Federal Reserve today approved several mandates to further regulate the credit card industry.
Credit card issuers must comply by February 22.
Below are some of the new regulations based on new credit card rules approved by U.S. lawmakers last year.
A credit card company must:
Send you a 45-day notice before they can increase your interest rate, unless such change is already previous disclosed.
Send you a 45-day notice before they can increase your annuals fees and late fees.
Not increase your interest rate for the first 12 months, with some exceptions.
Not allow a transaction to take you over the credit limit (and then charge you an over-the-limit fee) unless you opt-in to permit over-the-limit transactions.
Keep the due time at the same time of the month. If that due date falls in a weekend or holiday, you can pay the following business day.
Follow several new standards when issuing cards to people under 21.
Apply any excess amount beyond the minimum payment to the balance with the highest interest rate.
Only charge interest on balances in the current billing cycle.
For more details, visit the Federal Reserve website