NPR logo

Fed Adopts Rules To Protect Credit Card Users

  • Download
  • <iframe src="https://www.npr.org/player/embed/122516573/122516537" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Fed Adopts Rules To Protect Credit Card Users

Business

Fed Adopts Rules To Protect Credit Card Users

Fed Adopts Rules To Protect Credit Card Users

  • Download
  • <iframe src="https://www.npr.org/player/embed/122516573/122516537" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The Federal Reserve is offering consumers expanded protection when it comes to plastic. New regulations bar credit card companies from raising rates for one year after an account is opened. That is to stop the practice of sudden rate hikes. Credit card companies will also have to give customers more information about fees.

DEBORAH AMOS, Host:

NPR's business news starts with a heads up for credit card users.

(SOUNDBITE OF MUSIC)

AMOS: The Federal Reserve is offering consumers expanded protection when it comes to plastic. New regulations bar credit card companies from raising rates for one year after an account is opened. That's to stop the practice of sudden rate hikes. Credit card companies will also have to give customers more information about fees - and they'll have to consider a consumer's income and ability to pay before approving a new card. It'll make it harder for retailers to give out instant store credit cards. And some lenders have already bumped up rates to get an increase in before the new rules go into effect next month.

Copyright © 2010 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.