ICFE
ICFE eNEWS #08-25 - December 22nd 2008

New Credit Card Rules for July 2010

The final rules prohibiting certain credit card practices were adopted under the Federal Trade Commission Act, and are being issued concurrently with substantially similar final rules by the Office of Thrift Supervision and the National Credit Union Administration. Among other things, the rules will:

  1. Protect consumers from unexpected interest charges, including increases in the rate during the first year after account opening and increases in the rate charged on pre-existing credit card balances;
  2. Forbid banks from imposing interest charges using the "two-cycle" billing method;
  3. Require that consumers receive a reasonable amount of time to make their credit card payments;
  4. Prohibit the use of payment allocation methods that unfairly maximize interest charges;
  5. Address subprime credit cards by limiting the fees that reduce the amount of available credit.

Highlights of Final Rules Regarding Credit Card Accounts from the Federal Reserve Board.

Regulation AA (Unfair Acts or Practices) Final Rule
The final rule amends Regulation AA to prohibit unfair or deceptive acts or practices by banks in connection with credit card accounts. The effective date for the Regulation AA amendments is July 1, 2010.

Regulation Z (Truth in Lending) Final Rule
The final rule amends Regulation Z to improve the effectiveness of the disclosures consumers receive in connection with credit card accounts and other revolving (non home-secured) credit plans. The effective date for the Regulation Z amendments is July 1, 2010.

Highlights of Rules Regarding Overdraft Services
Regulation DD (Truth in Savings) Final Rule
The final rule amends Regulation DD to address depository institutions' disclosure practices related to overdrafts. The effective date for the Regulation DD amendments is January 1, 2010.

Regulation E (Electronic Fund Transfers) Proposed Rule
The proposal amends Regulation E to provide consumers certain protections relating to the assessment of overdraft fees. The proposal replaces previously proposed amendments under Regulations AA and DD addressing overdraft services.


Sent by:

Paul Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)


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