The Federal Reserve and other bank regulators are cracking down on "unfair or deceptive" credit card practices, including fees, and interest rate increases blamed for pushing Americans deeper into debt.
The central bank adopted rules yesterday that limit rate increases on existing balances and require lenders to give consumers a reasonable time to pay. The National Credit Union Administration and the Office of Thrift Supervision adopted the same rules, which an industry group said will raise borrowing costs. The new lending policy takes effect in July 2010.
"In recent years, credit card terms and features have become more complex," Fed chairman Ben S. Bernanke said before the vote at the Fed's Washington headquarters yesterday. "Consumers must understand the pricing of credit card services if they are to make well-informed, responsible decisions."
