Federal Reserve credit card laws passed by Congress in favor of consumers
A new set of rules issued this week by the Federal Reserve regarding implementing credit card laws will please consumers and have banking experts acquiescing that the consumer is finally represented moreso than the credit card companies. The 1,155-page set of rules go into effect February 22nd and outline for banks new regulations designed to protect consumers, including a ban on credit card issuers setting minimum interest rates. Automatically enrolling consumers in fee-charged over-the-limit programs will also be a no-no. In addition it will not be as easy for banks to control interest rates based on the prime rate and other changing indicators.
This new set of laws to be implemented “…demonstrates the Fed is trying to anticipate moves and err on the side of consumers," according to Nessa Feddis, American Bankers Association’s vice president and senior counsel.
Additional Consumer perks to these laws passed by Congress are as follows:
Credit issuing agencies will no longer have the luxury of automatically enrolling consumers in credit card programs that make the offer to charge beyond the credit limit.
Banks' ability to hike interest rates will be scrutinized.
A consumer's rate won't be raised simply for a late-paid cell phone bill. Moreover, a bank cannot raise rates until 60 days have past after the consumer is late paying a credit card bill.
Consumer groups expressed that banks should not have the final say in which prime rate applies to an interest rate. The Federal Reserve agreed.
It will be required on monthly credit card statements to clearly indicate how long it may take to pay off a balance by making only the minimum payment.
“Floors,” or minimum rates under bank control in order to mess with credit card rates will be no more. That’s right: No More Floors!
This is good news for all consumers, but also for consumers in debt, or those considering filing bankruptcy to get out of credit card debt.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
