RateAPY

New Credit Card Rules from the Federal Reserve

Posted by: RateAPY Bank Rates News
February 1st, 2010

In an attempt to help consumers get a better handle on their credit card debt, the Federal Reserve has passed new regulations on credit card companies. The new rules will go into effect on February 22, 2010. Here is a summary of some of the changes you can expect:

• Before your credit card company can raise your interest rate, they have to mail you notification 45 days prior. This does not apply to variable-rate cards when the index increases or to the expiration of an introductory rate.
• Your monthly statement will now show how long it will take to pay off your balance if you only make the minimum payment. It will also show you the payment amount if you pay the balance off in three years.
• Other than an index increasing on a variable rate or an introductory offer expiring, your credit card company cannot raise your rate on a new credit card for the first 12 months.

These regulations are meant to help consumers better understand the interest rate on their credit cards and manage their debt more effectively.