-- If your rate has increased since Jan. 1, the issuer would have to evaluate your account at some point. And if the reason why your rate was increased is no longer an issue, if appropriate, they would have to do a rate reduction.
If you want to comment on the proposed rules, send an e-mail to regs.comments(at symbol)federalreserve.gov. Include "Docket No. R-1384" in the subject line. You can also comment by fax. Send to (202) 452-3819 and also include the document number. Comments must be received on or before April 14.
Already some comments have been posted, although many are from people venting against changes that have left them with higher interest rates.
However, one woman had a good suggestion to deal with penalty fees. She recommended the Fed impose a cap in order to prevent banks from seeking loopholes that would allow them to continue charging high fees.
"It is critical the board issue the strongest rules possible to protect consumers, since the banks continually come up with new ways to get around the consumer-protection laws," wrote the woman, who signed her name as Susan Smith. "I urge you to give me the protections I was promised under the CARD Act, and issue the strongest rules possible."
Yet one anonymous poster wondered: "Why don't you just socialize the entire credit card industry? You keep adding regulations on top of regulations, do you not understand that these costs will eventually, somehow be passed onto the consumers? You are incorrectly penalizing the corporations for the incompetence of the consumer."
Another offered: "It is my opinion that this is another set of meaningless rules and regulations that will not affect the banks or their extreme practices whatsoever. These regulations have enough loopholes and delays built in that they will have no 'teeth' with the banks."
I disagree with the last comment. The CARD Act and the proposed changes are better than what was the old rule of the day, which was essentially gouge people at will.