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WASHINGTON: Tough new rules on the U.S. credit card industry went into effect Monday. The rules are largely aimed at preventing banks from employing tactics designed to plunge card users into a never-ending cycle of debt. The lenders serving risky borrowers say high fees and interest rates are necessary because their customers are more likely to default on loans. Restrictions on what they charge could put them out of business and leave the neediest with no options at all, they say. Meanwhile, advocacy groups say the rising public anger toward the credit card industry show the need for greater consumer protections. Under the new regulations, interest rates cannot be raised in the first year after an account is opened unless an introductory rate has come to an end. After that, cardholders must be notified 45 days in advance of any rate change. For existing balances, rates can't be raised unless the account is at least 60 days past due. If payments are made on time for six c...

Regulations aimed at making credit card policies clearer may reveal higher fees, rates NEW YORK :: The rules your credit card company operates by will start getting much clearer on Thursday. But just because you'll know what they're up to doesn't mean you're going to like what you learn. Regulations aimed at reining in practices like unexpected interest rate increases and credit limit cuts start with two rules. Consumers will now be given advance warning of any major changes to the terms of their accounts, and get more time to pay their balance after receiving a bill. These small changes come ahead of more sweeping regulations that will take effect starting in February. Those touch on matters ranging from mandating reviews every six months of accounts that have had rate hikes to limiting the credit that can be offered to students. Card companies have been gearing up for the new landscape for months, mailing consumers a spate of warnings about fee and interest rate chang...