The federal regulators have made new rules for the credit card industry on Thursday. This has been done in three decades which includes strict restrictions on interest rate hikes and late fees.

It’s goods news for the consumers because the regulation that is coming from July 2010, decided to block the companies who will charge high interest on the existing balances. At least 21 days time should be given to the consumers to make their payment only after crossing this time period the late fees will be charged.

The views on this measure differ from person to person. I am including few eminent people’s view below:

Federal Reserve Chairman Ben S. Bernanke said that the trend of the credit card was becoming very complicated due to the pricing scheme and the terms and conditions of the credit card companies. The mysterious charges lead to lots of frustrations for the consumers. For which this measures was needed.

Edward L. Yingling, chief executive of the American Bankers Assn. said that the banking industry is opposing the whole thing since now the credit card companies will try to make up their expenses that will incur due to the change in the regulation. The card companies will raise the interest rates in order to cover up the expense.

But the consumer advocates has a different view on this regulations according to them these regulations that were adopted by Fed, the Office of Thrift Supervision and the National Credit Union Administration, should have addressed the hidden traps and fees which are there in the fine print of the credit application.

"There has been a long time since these regulations have changed, and banking and card companies have had very successful lobbies that kept any meaningful legislation at bay," said Ginna Green, a spokeswoman for the Center for Responsible Lending. "But consumer advocates and congressional leadership have put the pressure on regulators to do what really needs to be done for a number of years."

Nicoli Tucker who is a marriage and family therapist from Northridge wanted this change.
Tucker had number of credit cards and in a year she realized that her interest rates rose from 5% to 28%. On the other hand she was given a very short time period for payment. As short as two weeks only this was down from a month.