The FTC Act

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

7 New Year’s Resolutions to Make With Your KidsFamily

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Tasty Alcohol-Free Drinks That Adults Will LoveFamily

10 Simple Money Moves to Make Before the New YearFamily

Could Your Pet Benefit From Marijuana-Laced Treats?Family

If you've ever been nailed by a credit card late-payment fee, had your interest rate raised unfairly, or otherwise suffered at the hand of your credit card company, relief may be in store.

If you’ve ever been nailed by a credit card late-payment fee, had your interest rate raised unfairly, or otherwise suffered at the hand of your credit card company, relief may be in store… provided new rules proposed by the Federal Trade Commission are enacted.

Five major protections offered by the FTC Act

  1. Banks would be prohibited from increasing the rate on a pre-existing credit card balance (except under limited circumstances) and must allow the consumer to pay off that balance over a reasonable period of time.
  2. Banks would be prohibited from applying payments in excess of the minimum in a manner that maximizes interest charges.
  3. Banks would be required to give consumers the full benefit of discounted promotional rates on credit cards by applying payments in excess of the minimum to any higher-rate balances first, and by providing a grace period for purchases where the consumer is otherwise eligible.
  4. Banks would be prohibited from imposing interest charges using the “two-cycle” method, which computes interest on balances on days in billing cycles preceding the most recent billing cycle.
  5. Banks would be required to provide consumers a reasonable amount of time to make payments.

In short, these changes are good for the consumer but bad for the credit card companies, and as such, credit card companies are lobbying heavily for these rules not to be enacted. If you’d like to see these proposed changes become permanent, you can write to: Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551.

If you’re feeling slightly more adventurous, you can call the FTC at (202) 326-2222, try e-mailing them at [email protected] or use the e-mail form at USA.gov, selecting “Consumer Protection” as your message’s category. In fact, the FTC’s entire organizational directory can be downloaded from http://www.ftc.gov/ftc/orgdirectory.pdf, so if you really want credit card changes, you could always call everyone.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: How the Trump Tax Plan Will Affect You

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,888 more deals!