After a long time a piece of news gives the smile over Americans because the relief is on the way for millions of U.S citizens who are very angry with their credit card companies. Recently, U.S. regulators which are led by the Federal Reserve, the U.S. Central Bank approved some new rules to ban what they call ‘unfair or deceptive’ practices by banks as well as credit card companies this week. The new rules are scheduled to take effect in July 2010. For several years, customers have complained banks have imposed unreasonable and high amount of fees or very often they have hiked their interest rates without any reason.
Most of the consumer groups say that as such practices were legal; so, they have helped push many card-holders deeper into debt. Hopefully that the new rules would protect and guard consumers from arbitrary rate hikes, alongside require. Additionally, they will be offered a fair amount of time in order to pay down debts. But some critics complain these changes will simply make it further difficult for numerous consumers to get new credit. A study shows the rule changes can cost the U.S. banking industry over $10 billion per year. On the other hand, many American lawmakers say they decide to look at passing legislation upcoming year to aggressively target credit card lending abuses. Now U.S. people wait to get the practical experience of the rules.