The Federal Reserve Board finalized a rule on Tuesday that is designed to protect consumers from credit card fees and interest rates that jump suddenly.
Processing Content
The final rule, which will take effect Feb. 22, prohibits rate increases during the first year of an account and requires consumers to sign off on transactions that would put them over their credit limit and charge them a fee.
Double-cycle billing and issuing credit cards to borrowers younger than 21 without a co-signer are also banned.
"This rule marks an important milestone in the Federal Reserve's effort to ensure that consumers who rely on credit cards are treated fairly," Fed Gov. Elizabeth Duke said in a press release Tuesday.
