You Asshats Bumbled Credit Cards so Now the Fed Has to Go Clean Up
This is lame, you're giving them an excuse to stick around Hey look at how useful we are, punking the big mean credit card companies on your behalf, poor little overleveraged American consumer. Yeah right, and Foxy Loxy knew a shortcut through the woods to get to the king but that didn't mean it was a good idea to follow his ass.
The U.S. Federal Reserve approved rules to protect credit-card holders from unreasonable late- payment fees and to require issuers to review interest-rate increases.
The Fed’s rules prohibit credit-card issuers from charging consumers more than $25 for paying late unless the card holder has “engaged in repeated violations,” bans inactivity fees for not using the card, prevents multiple penalties on a single late payment and requires issuers that have increased rates since Jan. 1, 2009, to consider reducing those rates, according to a statement today.
“The new rules require that late payment and other penalty fees be assessed in a way that is fairer and generally less costly for consumers,” said Federal Reserve Governor Elizabeth Duke in the statement. “Card issuers must also reevaluate recent interest rate increases and, if appropriate, reduce the rate.”
Next thing you know, they'll write the check for you and include it with your monthly statement since you can't even handle reading through the terms or understanding that paying off a $3000 balance on a 22% card at the minimum will take you 23 years and cost you $7000. Don't check that math, it's not literal.
Anyway, please don't encourage them, it only leads to bad things and I say that from personal experience.
The changes to Regulation Z (Truth in Lending) will "generally" go into effect on August 22, 2010 [via the Board]