Group says more credit card debt rules needed
Consumers Union, the Wisconsin-based group that runs the popular Consumer Reports magazine and website, says that although credit card reforms have largely been helpful, many new limits are still too high for many Americans to stomach, according to a report from the Madison Capital Times. In particular, it noted that fee caps of $25 per infraction, and $35 for repeat offenders, should be lowered.
“And the regulation doesn’t address the size of penalty interest rates, which we think should be reduced to no more than seven percentage points over the prior rate,” the group recently wrote in the latest issue of Consumer Reports, according to the newspaper. “Now there’s no cap.”
The new Consumer Financial Protection Bureau will gain full regulatory power in July, and will likely add numerous new rules that will help consumers more successfully avoid credit card debt.