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Credit Card rules make happy

The Federal Reserve took direct aim at credit card issuers this week. They adopted several new rules to protect credit card holders including a $25.00 cap on late fees, a reduction of penalty fees, and a ban on “inactivity” fees. In addition, they’ve asked (not mandated) card issuers to lower the interest rates that some raised at the beginning of the year in anticipation of the new regulations. The American Bankers Association claims they will “work quickly and diligently” to comply with the new rules. But some consumer watchdog groups feel the new rules don’t go far enough and warn that credit card companies will simply find new ways to stick it to consumers. Patt’s interest is piqued.

Guests:

Josh Frank, Senior Researcher, Center for Responsible Lending