Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

New credit card rules: Blessing or curse?

December 19, 2008 by  

New rules for the credit card industryThis week, the Federal Reserve approved new regulations for the credit card industry which are aimed at protecting consumers.

The rules, which are set to go into effect in mid-2010, prohibit credit card providers from engaging in practices such as applying all of a cardholder’s payment to the balance with the lowest interest rate.

They also insist that issuers give customers 45 days’ notice before changing the terms of their credit card agreement, among other limits on industry behavior.

However, although consumers may cheer the new regulations, some industry experts fear they will actually have a negative effect on the economy.

Banking analyst Meredith Whitney raised concerns that the move will inhibit consumer spending, reduce the ability of lenders to offer credit and cause them to tighten their lending criteria, according to Reuters.

"This [credit] line reduction will strain credit quality not just for credit card loans but for all consumer loans," she said.

Whitney added that many credit card companies have already been forced to lower credit limits and cancel customers’ accounts, in order to protect themselves from risk.
ADNFCR-1961-ID-18940522-ADNFCR

Personal Liberty News Desk

Facebook Conversations

Join the Discussion:
View Comments to “New credit card rules: Blessing or curse?”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.