Fed Proposes Revisions to Credit Card Agreements
Posted on Jun 30, 2007 by
Consumers are often confused by the fees and terms of their credit card contracts, so the Feds are trying to help credit cards companies become more consumer friendly.
Currently, credit card companies have the right to change the terms such as the interest rate for their customers with 15 days’ notice. An exception is when the consumer was late on another credit card payment. In this case his interest rate could skyrocket without any warning at all.
With the proposed changes, the Fed wants consumers to get at least 45 days’ notice in the event that their interest rates or any other terms of their contract will change. That will give consumers time to explore their other options, such as transferring a balance to a new, lower interest credit card or paying off the balance if possible.