The Federal Reserve – in conjunction with the Office of Thrift Supervision and the National Credit Union Administration – have suggested some additional explanation to rules that it had issued in December 2008.
One of the clarifications states that key protections in the rules would continue to apply to credit card balances even if the account is closed or the balance is transferred to another account under the same lender. This means that if another lender purchases an account, they are still subject to the rules.
The other amendment is aimed at clearing up potential confusion about deferred-interest deals, such as zero percent offers. Issuers cannot impose a sudden “hair-trigger” or “universal default” rate on consumers who take advantage of these offers, the Fed said.
“We’ve gotten a lot of feedback,” William Ruberry, spokesman for the Office of Thrift Supervision, told Bloomberg. “We wanted to make sure it applies evenly, and there are no gaps or loopholes.”
The banking regulators are accepting public comments on the clarifications for 30 days. The rules are set to take effect on July 1, 2010.
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