Alert February 10, 2009

Federal Banking Agencies Publish Final Credit Card Rules

The FRB, OTS and NCUA published a joint final rule intended to prohibit unfair and deceptive credit card practices. Among other things, the rule prohibits double-cycle billing, bans raising interest rates on pre-existing balances, requires that consumers receive a reasonable amount of time to make payments, prohibits the use of payment allocation methods that unfairly maximize interest charges, and bans deceptive credit offers.

In related news, the FRB published a final rule amending Regulation Z to revise the disclosures consumers receive with credit card accounts and other revolving credit plans.

Both rules are effective July 1, 2010. Click here for the unfair and deceptive credit card practices rule and here for the Regulation Z rule.