Like, you know, totally, like, you know, cool!
Consumers will be shielded from increases in interest rates on existing account balances on their credit cards under new rules being adopted by federal regulators.
The changes will allow credit card companies to raise interest rates only on new credit cards and future purchases or advances, rather than on current balances.
The new rules coming Thursday from the Federal Reserve and other banking regulators mark the most sweeping clampdown on the credit card industry in decades, aimed at protecting consumers from arbitrary hikes in interest rates or inadequate time provided to pay the bills.
Interestingly, except for a brief blurb about the rules making it harder for people with bad credit to get credit and get subprime loans (isn’t that part of how we got in this financial mess?), they rules don’t include anything like live within your means, pay off your bills, and most importantly, read the terms of agreement. Because soon, if you charge up a fortune, you can blame the credit card company.
