WASHINGTON — The Federal Reserve on Tuesday issued sweeping new rules to better protect Americans from sudden hikes in interest rates on credit cards.
The new rules, which take effect Feb. 22, generally bar rate increases during the first year after an account is opened. After the first year, companies must provide customers with a 45-day notice before bumping up rates. Some lenders have pushed through rate increases ahead of the new rules. That irked lawmakers in Congress who had wanted to speed up implementation of the Fed’s rules. The new rules also will ban — with a few exceptions — increasing the rate on existing credit- card balances. Credit-card companies also will be required to obtain a customer’s consent before charging fees on transactions that exceed their credit limits. The Associated Press
