The Federal Reserve Board will meet in Washington, D.C., this week to vote on sweeping new credit card industry regulations.
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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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