Credit Card Smackdown on the Way!

I've been hearing all kinds of crazy credit card practices lately. People, who are paying their bills on time and may not even be carrying balances on their credit cards, are having their cards closed, interest rates raised, or credit lines reduced.

On Thursday December 18, 2008 credit strapped consumers might be getting good news as regulators vote to curb controversial credit card practices.

The news rules, if they go into effect, will prohibit banks from raising the interest rates on pre-existing credit card balances unless a payment is over 30 days past due.

Also, if approved the new rules will mean an end to double cycle billing, which averages the balance from two previous bills. What this means is consumers who carry a balance can have retroactive interest on their previous month's bill. Even if the bill has already been paid off.

Some set backs to these new regulations could be banks and credit card companies would have to charge higher interest rates to to offset losses and low introductory offers and zero percent balance transfers are likely to be cut back as well.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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