I previously mentioned that Congress had passed new legislation placing new rules on credit card companies in order to protect consumers. Given the recession, this seemed essential to helping bring Americans back to financial stability. This also includes student credit cards as they are a precursor, in regard to APR, to what students can see down the road. The Federal Reserve web site lists the latest rules that credit card companies must follow. They include:
1. Advanced notice of change or increase in credit card fees
2. Credit card companies cannot raise your interest rates for the first year
3. Bills must arrive at least 21 days before they are due
They are many other provisions and for those go to the Federal Reserve Web site.
Stay tuned for my next installment on student credit cards. I’ll go into what the credit card companies are doing to try and recoup their lost income as a result of the new rules.