CHARLOTTE, NC (WBTV) - Some very good news could be coming for everyone who owns a credit card.
The Federal Reserve is considering a sweeping set of reform designed to reign in credit card companies.
The rules would change the way cards are billed, fees assessed...and they could save you a lot of money.
Tomorrow could be a historic day. For decades, the country has been building A huge reliance on little cards, and credit card companies have been free to pump up their profits with what consumer advocates call hidden traps.
So what are they talking about?
Well, if you use a credit card, the chances are very good tricky policies--as critics refer to them--have cost you money, and you don't even know it.
Here are a couple examples.
If approved, the Fed's rules will take away something called universal defaults, a policy that allows a credit card company to increase your interest rate on one card, even if your record with it is spotless, if you are late on any of your other cards.
Feds could also end double-cycle billing, a practice that lets credit card companies charge you retroactive interest on bills you've already paid off.
The list of controversial practices goes on, and credit counselors say they are big reasons people get so buried in debt.
I've seen some of my clients with fees in excess of one hundred dollars per month, on a credit card."
"Just piling up without them even knowing it. Finance charges, late fees, over-limit fees. I've see one where the fees were almost equal to the dollar amount owed," said Tina Webb-Bouttry of Clearpoint Financial Solutions.