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Quote:Credit card issuers have had their heyday in an environment that allowed them to hike rates and change policies willy-nilly. That will end in 2010, when new federal rules imposing some consumer protections take effect. The card companies are warning of dire consequences due to their expected loss of revenue from what many consider usurious practices -- approximately $12 billion annually...

The Federal Reserve Bank has issued new rules that will take effect in 2010, radically changing the way credit card companies treat their customers. Essentially, they are strong protections that regulate interest rates and billing methodologies.

For instance, card companies will be prohibited from charging interest on balances that were paid off in the previous cycle. The rules also forbid card companies from raising interest rates on pre-existing balances. Card companies will be allowed to raise rates only on balances that a consumer accrues after being notified of the rate change. There are exceptions: The rule won't apply to money borrowed on a variable rate card, or when a minimum payment is made more than 30 days late...