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WASHINGTON (AP) - Confused by the fees and terms of your credit card? The Federal Reserve wants to make your monthly bill and solicitations that arrive in your mailbox easier to understand.
The Fed also wants companies to give people more than a month — 45 days — notice before making any changes to the terms of an account, including slapping on a higher penalty rate for missing payments or paying bills late.
Under current regulations, credit card companies in most cases provide 15 days notice before making certain changes to the terms of an account, the Fed said. However, under current regulations creditors need not inform a consumer in advance if the interest rate to an account increases due to default or delinquency.
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