Consumers have received long overdue protections from abusive practices by credit card issuers . In enacting the most sweeping changes to credit cards in decades, federal regulators on Thursday approved new rules to crack down on unfair and deceptive practices by card issuers.
The rules were issued by the Office of Thrift Supervision and approved later Thursday by the Federal Reserve and the National Credit Union Administration.
The rules, which take effect in July 2010, will let credit card companies raise interest rates only on new credit cards and future purchases or advances, rather than on current balances as is the practice currently. They also restrict other unfair lender practices such as allocating all payments to balances with lower interest rates when a borrower has balances with different rates.
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