Obama's New Credit Card Rules

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Ben Cohen
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By Ben Cohen

Here's what the plan will mean for regular folk (via Lifehacker)

  • Bills can be paid online or over the phone without incurring a processing fee.

  • Customers must be over 60 days late on payments before their
    interest rate can be raised on balances; if the rate is raised, it will
    go back to the lower rate if customers make the minimum payment on time
    for six months in a row.

  • Overlimit fees can't be charged unless cardholders are told that
    the purchase will put them over their limit and they authorize it to go
    through anyway.

  • If your card has more than one interest rate on balances, then payments must be applied to the highest interest rate first.

The full list of changes here. It's not a bad start, but the Obama Administration should go a lot further in regulating the companies responsible for plunging millions of people into abject poverty (like burning them all down and stomping on their ashes for example). However, it's good to see that he was serious about clamping down on the credit card industry, and something is better than nothing.