New Credit Card Rules Will Help Protect Consumers From Higher Rates

New rules for the credit card industry were adopted this week that will provide some relief for consumers.

One of the biggest rules is that credit card companies will not be allowed to raise interest rates on existing account balances.  They will be able to raise rates on future purchases, future advances and new accounts, but not current balances.  Having been a victim of increased rates on credit card balances in the past, I know this will be a big relief for people who carry credit card debt from month to month.

These new rules also prohibit credit card companies from allocating all payments to balances with lower interest rates when a borrower has balances with different rates.  This practice was done to ensure that the consumer paid on the highest interest balance for as long as possible.

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