Most of the changes associated with increased rates of royalties and the disclosure of new candidates. Also in the proposal from the Fed, changes in pay and the rules of the cycle.
Credit card issuers can be blocked by the cardholder the interest rate, for reasons as unjust. This would effectively end the once common practice of universal default. Most large companies, fell card universal standard of practice voluntarily increased after control of Congress in practice.
Credit card issuers May have to wait until the card is a full 30 days before the offender to justify raising interest rates. In addition, possible new restrictions on pricing for the amount of time, such as rental car or hotel. Banks may not be able to charge on the basis of these holds.
Credit card balances divided into several categories of interest payments in May, allowing the cardholder. Card issuers apply payments are currently the lowest interest rate first assessment. These rules apply to a portion of the payments made on the minimum payment.
Changes in accounting period
The Fed encouraged cardholders a reasonable period, the minimum payment. This can significantly reduce the perception of certain late fees.
Double-billing cycle to end the practice within the Fed's proposal. This includes the cost of zero-balance, on the basis of a report from the previous billing period.
And disclosure obligations
Credit card issuers can be more forthcoming in identifying the conditions for eligibility to receive better prices for their advertising. Let it not enough to simply prove that candidates with less ability to pay can automatically switch to another product.
The registration fee and may be changed requirements for certain products. Cost-card processor could be banned forever.
Consumer groups argue that the Fed proposal does not go far enough. They want even more restrictive measures on the ground. This proposal was originally sent to the Republic of Carolyn B. Maloney (D-NY). She is the author of Credit Card Bill of Rights (HR 5244), in which more aggressive in the field of consumer credit cards.
Fed Chairman Benjamin Bernanke said that "consumers with credit cards should be easier to predict how their decisions and actions will be at their expense." Bernanke believes that the proposal represents a new standard of justice in relation to the plans by credit card.
Credit card issuers, on the other side, skip the proposed changes. Managing Director of the American Bankers Association, Edward Yingling, said that "the Federal Reserve offers an unprecedented interference in the management of market pricing and product proposals.
Industry insiders threatened that such changes could lead to even more restrictive credit proposals, which severely restrict access to credit cards to subprime borrowers. Any change will not vote after the 75-day public comment period has elapsed. The final proposal could come into force until the end of 2008.