Federal Reserve Proposes Rule to Clarify New Credit Card Protections
A proposed rule set forth by the Federal Reserve Board on Oct. 18 would enhance consumer protections put in place under the credit card legislation enacted in May 2009. Additionally, the proposal aims to "resolve areas of uncertainty so that card issuers fully understand their compliance obligations," according to the Fed announcement.
A hard line on changing terms
Limiting the issuers' fees
Last, the proposal would require card issuers to consider consumers' independent income—as opposed to household income—when evaluating whether to open an account or increase the credit limit on an existing account.
The proposed rule aims to clarify portions of the Fed's final rules implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act), the last of which went into effect in August. The proposal will have a 60-day comment period prior to becoming final.
October 27, 2010