The Federal Reserve Board of Governors has issued final rules to protect credit card users. These rules prohibit certain unfair acts or practices and improve the disclosures received by consumers in connection with credit card accounts and other revolving credit plans.
Federal Reserve Chairman Ben S. Bernanke said: “The revised rules represent the most comprehensive and sweeping reforms ever adopted by the Board for credit card accounts. These protections will allow consumers to access credit on terms that are fair and more easily understood.”
The new rules, which take effect on July 1, 2010, contain provisions that:
In addition, the Board adopted final rules that revise the disclosures received by consumers in connection with credit card accounts and other revolving credit plans, ensuring that information is provided in a timely manner and in a readily understandable form. The rules, which amend Regulation Z (Truth in Lending), require changes to the format, timing, and content of credit card applications and solicitations and the disclosures received by consumers throughout the life of an open-end account. The rules follow a comprehensive review of open-end credit New Rules on Credit Card Practices and Disclosures rules. Many of the changes reflect the results of consumer testing conducted on behalf of the Board during its review. These rules also take effect on July 1, 2010.
Separately, the Board issued for public comment proposed amendments to Regulation E, which concerns electronic fund transfers, to provide consumers with a choice regarding their institution’s payment of overdrafts for automated teller machine withdrawals and one-time debit card transactions. Two alternative approaches are proposed. The comment period ends 60 days after publication in the Federal Register.
Finally, the Board adopted final amendments to Regulation DD (Truth in Savings) to address disclosure practices related to overdraft services of depository institutions. The rules take effect on January 1, 2010.
For the December 18, 2008, press release, go to www.federalreserve.gov and select News and Events.