In a move that is being lauded by many concerned consumers, the US Federal Reserve has beat the 22nd February 2010 deadline to put new credit card rulings in place. For parents, this is indeed a much appreciated move that makes it more difficult for youths below the age of 21 years old to apply credit cards. This means that banks can only issue credit cards to teenagers if the applicants are able to remit payments or obtain signed permission from parents or guardians. This move will hopefully eliminate teenage debt, a problem is becoming more and more prevalent in today’s society where credit cards are so readily available for high school youths. Although these credit cards are called “teenage credit cards”, all it does is incur debts between parents and financial institutions.

The new ruling set by Fed also protects consumers from sudden increases in interest rates and credit cards fees. This is definitely good news for many who are afraid to take on new credit cards or even maintain their existing ones for fear of a hike in interest rates. Outside the United States, it is interesting to note that the Malaysia government has set a new MYR50 credit card tax (US$15) which is imposed for every credit card held by consumers. Supplementary cards are charged less.

In related news, the Federal Reserve Board also released a new “What You Need to Know” guide that will help shed light on credit card issues experienced by most consumers. The concise guide is broken down into different sections such as:

• What your credit card company has to tell you – When they should or should not send the 45-day advance notice, and other issues
• New rules regarding rates, fees and limits – New rules include no increases for interest rate for the first year, ceiling rates on high-fee credit cards and regulations concerning minors under 21 applying for credit cards under their own name
• Changes to billing and payments – No double-cycle billing is allowed

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