New rules prohibiting unfair collection acts and practices will go into effect in 2010. The Federal Reserve Board announced last December the approval of these new rules to better protect credit card users.
In the meantime, credit card companies are positioning themselves to try to lessen the impact on them of the new rules.
For instance, credit card companies are taking advantage of consumers who are late with their credit card payments. Creditors are now, without prior notice, raising the interest rate on late paying consumer’s credit card debts, by three or four, or even five times the rate it was before.
In addition, new credit card applicants are finding themselves subject to more stringent screening processes as well as a higher interest from the beginning.
The following is a synopsis of some of the new rules: