Credit card reform is coming soon

January 12, 2010 5:53:46 PM PST
New credit card reforms aimed at protecting consumers from credit abuse, received final approval Tuesday from the Federal Reserve Board.

This was expected, but it is still good news for consumers. It bans the practice of upping interest charges on items already charged.

Higher interest rates can only be applied to new charges. It also forbids over-the-limit fees, unless you agree to them in advance.

It also prohibits credit companies from issuing cards to those under 21 unless they can prove they have the ability to pay.

The new rules take effect February 22, 2010.