What to know about credit card reform

May 30, 2008 5:46:00 PM PDT
What you need to know about credit card reform! Senior attorney from the Consumers Union, Gail Hillebrand, and Michael Finney have the answers.

The Federal Reserve Board and two other federal agencies have issued a proposed rule that would restrict some of the most unfair credit card tricks and traps. The proposal could be a big win for consumers if it is not weakened.

The rule would:

  • Stop credit card companies from hiking interest rates on existing balances (unless you pay more than 30 days late.)
  • Stop credit card companies from applying your monthly payment to low-interest debt first.
  • Give you time between the bill and the due date so you can always pay on time.
  • Stop interest charges on debts paid off in the previous month.
    To help make sure that this new rule of fair play is adopted, tell the Federal Reserve Board about the story of your bad credit card experience.

    File your comment by going to the Consumers Union website: www.creditcardreform.org and enter your comments in the box provided.

    Or submit to the Fed by sending an e-mail to regs.comments@federalreserve.gov. Make sure you include Docket No. R-1314 in the subject line.

    For a short summary of the proposed rule, go to: http://www.consumersunion.org/pdf/CreditCardReformShortSummary.pdf.

    LINKS:

  • creditcardreform.org
  • www.consumersunion.org/money.html


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