Fed proposes unfair practices rules for cards and overdrafts

Daily news headlines

New proposals from the US Federal Reserve Board outline tougher consumer protection on credit card payments and overdrafts

WASHINGTON, DC – The US Federal Reserve has proposed new rules to protect consumers from unreasonable changes in interest rates on their credit card and overdraft repayments. The Fed says customers should be given reasonable time to pay off debts before being subject to extreme interest rate changes.

The proposed changes to the Fed’s Unfair or Deceptive Acts or Practices regulation (Regulation AA) would be complemented by separate proposals issued under the Truth in Lending Act (Regulation Z) and the Truth in Savings Act (Regulation DD).

The Fed proposals mark an attempt to increase customer protection from the profusion of small-print rules that credit card firms can impose on their customers. Payments that arrive by 5pm on the due date or on a public holiday now cannot be considered late.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here