Fed meeting this week to consider new credit card rules
Final rules may mirror proposal issued in May
By Connie Prater | Published: December 11, 2008
See the latest developments: Regulators issue sweeping new credit card rules
Federal regulators will meet this week to vote on the most significant changes in credit card rules in nearly three decades. Banking industry officials and consumer groups expect the final rules -- which seek to improve disclosure on credit card terms and ban unfair and deceptive practices -- will largely mirror those proposed in May.
The Federal Reserve Board of Governors will meet at 2:30 p.m. Eastern Dec. 18 at the Fed in Washington, D.C., to consider the final rules. (See: What the new credit card rules may mean for you.)
If approved, the rules could help millions of credit users avoid interest charges, late fees and other credit card traps criticized by members of Congress, consumer groups and cardholders. Issuers would also lose the ability to raise rates on old debt. Banks and credit card issuers have said the new rules could mean less credit and higher interest rates for all consumers because the proposal will limit lenders' ability to re-price credit card terms when borrowers become more risky.
Credit card issuers are resigned to accept the Fed's regulations. "They have constructed a new stadium and and we are all going to have to play ball in it," says Peter Garuccio, spokesman for the American Bankers Association.
"The general sense of our members is the rules are coming," Garuccio adds. "It will create an entire new environment for credit cards."
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See related: Regulators issue sweeping new credit card rules, What the new credit card rules mean for you, What the new credit card rules don't cover, How to cope with credit cards until the new rules take effect, House passes Credit Cardholders' Bill of Rights, Fed backs rules to curb deceptive credit card practices, Fed moves to close timing loophole in credit card payments, Senate banking chairman: Credit card reform on tap, Proposed credit card rule changes draw massive response, Poll: Nearly 3 in 4 feel need for more credit card regulation, Obama will usher in credit card reform, observers say
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