Sunday, July 13, 2008

Sound Off to The Fed About Credit Cards

If you ever wanted to let someone really know how you feel about your credit card interest rate being changed, the late fees, and the bait and switch of low balance transfers, then now is your chance.

The Federal Reserve (The Fed) is asking for comments on credit card reform rules that were proposed in May. The deadline to "sound off" is August 4.

The Fed is really looking to try and help consumers with the new rules, and most advocacy groups are very pleased with the proposal. The two-cycle billing, payments being credited toward low interest rate items first, and not being able to change the rate on debt you have already accumulated.

The credit card companies disagree with the proposals of course. They say if they cannot make changes, then everyone will pay higher rates to start (even good credit holders). They make the claim that there will be less credit available, less competition, etc., etc.

Congress is also trying to weigh in. They want to change the time period they must mail the bill, allow payments with a post date of the due date to be considered on time, and limit marketing to those under age 21. The big issue of fees though is one they are really looking to tackle.

To make a comment to The Fed on the proposed rules, go to click on "Consumer Information" at the top of the page, click on "Proposed Rules for Credit Cards and Overdraft Services," scroll to the bottom of the page, and under "Regulation AA," click on "Submit Comment."

Remember, the comments are public.

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