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Agencies propose sweeping changes to credit card practicesFederal regulators are poised to make some of the most sweeping changes in rules governing how credit card issuers market, promote and collect on millions of credit card accounts. New rules released today by the Office of Thrift Supervision (OTS) and scheduled for a vote Friday before the Federal Reserve Board in Washington, D.C., outline seven key protections that target some of the most egregious credit card industry abuses cited by consumer advocates. Double-cycle billing, allocating payments to lower interest purchases first and changing due dates would be banned under the new rules. Proposed rules
Overdraft protection The Fed, OTS and National Credit Union Administration are exercising their authority under the Federal Trade Commission Act (FTC Act) to impose regulations on banks, credit unions and savings associations. The act prohibits unfair and deceptive trade practices in business and commerce. The agencies "have joined to each issue an identical proposed rule," according to an OTS press release. The OTS approved the proposal today. Reaction “For once the bank regulators appear to understand that credit card companies and banks have been ratcheting up profits by unfairly tightening down the screws on consumers. We’re encouraged that this press release indicates the intention of bank regulators to protect consumers from the worst of the bank unfair and deceptive practices. While the devil is in the details we haven’t yet seen, what we’ve seen is mostly positive. Of course, there is still a lot of work that Congress will need to do to protect college students and other consumers from other unfair practices.” Bank executives have testified in numerous Congressional hearings over the past year that tougher regulations could mean higher interest rates and less credit available to consumers, particularly those with low credit ratings. Slow process Stay tuned. CreditCards.com will have a reporter at the Fed hearing Friday to report the latest developments.
See related: "Fed: Expect credit card regulations this spring," "Fed to release new credit card regulations this week," "Regulation Z: Fed moves to change credit card rules," "House introduces Credit Cardholders' Bill of Rights" 2 Comment(s)Leave a comment |
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I was late on a couple of payments. to HSBC. I not only caught up But I sent them a few hundred dollars extra. They not only charged me a late fee for the two payments which sent the balance over the limit, hense over the limit fees, they called me up and pretended they were going to help me since I was low income just to get my personal information like when was my check deposited into the bank. I was so afraid that I switched my bank. Now they are charging me $44.00 on $2,796 and they went up on my monthly payment. My husband has MS he is 72 and I am 69 .I can't sleep at night. What can I do? The more I pay the higher the balance goes and the card has been closed for three months.
Billy,
You can submit comments to the Federal Reserve regarding your experiences at the following Fed web site: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm
Look for "Regulation AA" regarding unfair or deceptive practices.