Government Launches Crackdown On Unfair Credit Cards

By: AP
By: AP

WASHINGTON (AP) - The Federal Reserve is expected to vote this
afternoon on proposed rules designed to stop credit card companies
from unfairly raising interest rates and to make sure they give
people enough time to pay their bills.
The central bank and two federal agencies are proposing new
rules that would prohibit companies from placing unfair time
constraints on payments. A payment could not be deemed late unless
the borrower is given a reasonable period of time, such as 21 days,
to pay.
Among the other proposals are not allowing companies to unfairly
allocate payments among balances with different interest rates or
unfairly raise annual percentage rates on outstanding balances.
The agencies say the new regulations could be finalized by the
end of the year. However, the banking industry is expected to fight
the new rules.

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