Comment on the Unfair Credit Card Practices Rules Proposed By Feds

In May, the Federal Reserve proposed new credit card rules that would eliminate several unfair practices in the credit and banking industry. You can comment on the news at the Federal Reserve's website until August 4, 2008. So far the board has received more than 20,000 comments.

The proposed rules fall under three different laws (FTC Act, Truth in Savings Act, and Truth in Lending Acts) and include:

FTC Act - Unfair Acts or Practices
• No double cycle billing finance charges
• No interest rate increases on pre-existing balances
• Payments cannot be allocated in ways that maximize interest rates
• When there is a promotional rate, banks must apply payments above the minimum to higher rate balances first
• Limits on fees for subprime credit cards
• Full disclosure of the requirements needed to qualify for promotional rates
• No credit limit charges when the limit is exceeded because of a hold
• Billing statements must be sent 21 days before the due date
• Banks cannot charge an overdraft fee unless the customer has been given the opportunity opt-out
• No overdraft fees caused by debit card holds


Comment on the Unfair Acts or Practices Proposals

Truth in Lending
• Mailed credit card payments received by 5 pm on the due date are on time.
• Payments are on time when received the next business day after a holiday or weekend (when the credit card company doesn't accept payment on those days)


Comment on the Truth in Savings Proposals

Truth in Savings
• Bank statements would have to include the total amount of overdraft fees and returned items
• Automatic bank balance reporting cannot include amounts provided by the bank to cover overdrafts


Comment on the Truth In Lending Proposals

Federal Reserve Board: Highlights of Proposed Rules Regarding Credit Cards and Overdraft Services