The Federal Reserve is proposing new regulations concerning credit card debt that have been pushed by consumer advocates for awhile now.
The proposed regulations, which could be finalized by year’s end, would label as “unfair or deceptive” practices that consumers have long complained about. That includes charging interest on debt that has been repaid and assessing late fees when consumers are not given a reasonable amount of time to make a payment. When different interest rates apply to different balances on one card, companies would be prohibited from applying a payment first to the balance with the lowest rate.
I’m curious how one defends “charging interest on debt that has been repaid.” I didn’t realize the Federal Reserve had a hand in regulating credit cards, but these changes look like an unambiguous good.