Fed Set Out to Regulate Unfair & Deceptive Practices

**Finance Globe** · May 2nd, 2008, 11:19 PM

If you haven't heard, the Federal Reserve has set out to stop unfair and deceptive practices for credit cards and banking and credit union overdraft fees. I see this as a very important step to help protect consumers (or the customer from their own bank/CU).

Here is the full proposal: http://www.ots.treas.gov/docs/7/73419.pdf
If you don't want to read the 269 pages :-), USA Today has a article/blog about it that summarizes it up: http://blogs.usatoday.com/ondeadline...eek-to-cu.html

It seems that this proposal will not go into effect until late this year, as banks are likely to appeal.

**Scribes** · May 3rd, 2008, 06:24 AM

Yeah, good old federal government. Slamming the barn doors after the horses are, like, 500 miles away. Want to explain why they didn't do this, say, ohhh, about FIFTY friggin' years ago?! :D

**Meya** · May 4th, 2008, 06:04 PM

Nice info FG! After reading the summarized story, it heightens my thoughts of "One day these unfair credit practices will become noticed and the conusmer will get a break." I hope this goes into effect much sooner because people with good credit has been treated so bad lately. I was watching on the news late last week where a gentleman had over $100k credit line with Citibank, and they decreased his limit without noticed. The gentleman wrote a check for $30k that started boucning like crazy, and caused him to owe hundreds worth of overdraft fees.

What was Citibank reason for doing so? They said "We can decrease anyone's limit whenever they feel like it, and when your home value drops" Don't think that the gentleman didn't get a lawyer, they are on Citibanks blood trail.

**Eldarwen** · May 4th, 2008, 07:31 PM

They should have thought about this and taken action sooner than this.

**hjm331** · May 5th, 2008, 09:39 AM

I hope they do something about universal default, that's really a low blow/cheap shot right there.

**alpha** · May 5th, 2008, 10:05 AM

The Fed doesn't like to get in a hurry about anything. They've been letting the credit card issuers get away with some really shady things, so it's about time they tightened up. The new rules are expected to be final by the end of the year.

**Scribes** · May 6th, 2008, 07:21 AM

Originally Posted by 101378

The Fed doesn't like to get in a hurry about anything. They've been letting the credit card issuers get away with some really shady things, so it's about time they tightened up. The new rules are expected to be final by the end of the year.

Way too late to save this economy for 2008. It'll be interesting to see what Obama does next year. He's getting a heck of a mess. :D Record deficit, a trillion thrown away in Iraq, gas prices at $4.50/gallon, and unemployment at 7%. Yeah, those are my predictions.

**hjm331** · May 6th, 2008, 09:30 AM

I don't care who gets elected for President as long as they do their job and save this country.

If they can find a way to restore lost jobs, that will support everything as a foundation because without jobs, loan lenders including credit cards will not be paid back when there aren't any jobs. So, if they can restore some jobs back, it will be a huge step up.

**Scribes** · May 7th, 2008, 07:48 AM

Originally Posted by 100379

I don't care who gets elected for President as long as they do their job and save this country.

If they can find a way to restore lost jobs, that will support everything as a foundation because without jobs, loan lenders including credit cards will not be paid back when there aren't any jobs. So, if they can restore some jobs back, it will be a huge step up.

I agree. The job market is most important. But the thing is, with gas so high a lot of companies have to cut costs, and that means letting employees go. Our first order of business has got to be lowering oil prices.

**Meya** · May 7th, 2008, 06:05 PM

For some reason, I don't think that the gas prices are going to drop this time. I believe this is the short run. They want to sit back and see how long will it take for us to adjust to the $4.00-up price, and then it will sit like that for the long run. Farwell to the 8 cylinders, I don't know how many is going to be sold in th near future but I bet you it will not be a lot.

**Scribes** · May 7th, 2008, 08:54 PM

Originally Posted by 100008

For some reason, I don't think that the gas prices are going to drop this time. I believe this is the short run. They want to sit back and see how long will it take for us to adjust to the $4.00-up price, and then it will sit like that for the long run. Farwell to the 8 cylinders, I don't know how many is going to be sold in th near future but I bet you it will not be a lot.

Let's HOPE not. Saying farewell to the 8-cylinders takes a HUGE dent out of auto manufacturing -- and Ford and GM already posted RECORD losses this past fiscal year. :( I don't know if I want to see another 20,000-50,000 auto-workers out on the streets. The unions won't stand for it.

**Meya** · May 11th, 2009, 07:34 PM

5/11/2009

**Brian23** · May 16th, 2009, 01:45 PM

This is great. But, the only thing that worries on this is when the Feds start controlling the credit card companies, it will be next to impossible to get credit from any1. But I do strongly agree that someone needs to step in and tell these companies that its not ok what they're doing to customers.