It is really about time Fed does something before a credit card balloon evolved.  Or rather it has evolved, time to let off some gas.  The credit card industries are promising heaven, encouraging debts but allowing you to defer payment for one month to go on holidays etc.  Encouraging the Spend Spend Spend attitude.  But charges exorbitant interest rate close to 25% when you can’t pay up.   Credit cards can be issued to your cats and dogs and who knows with such lenient regulations.   Hopefully the new rules would help curtail irresponsible spending.

The proposed new rules would prohibit:

1.   Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay;

2.   Unfairly allocating payments among balances with different interest rates, with lenders crediting payments to balances with lower rates so they can continue to charge interest for balances at higher rates;

3.   Retroactively raising interest rates on pre-existing balances;

4.   Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account;

5.   Unfairly computing balances in a computing tactic known as double-cycle billing;

6.   Unfairly adding security deposits and fees for issuing credit or making credit available;

7.   Making deceptive offers of credit.