Thursday, May 21, 2009

Flaherty to announce new credit card rules: report

Finance Minister Jim Flaherty is set to announce new credit card regulations Thursday, says a report.

The Globe and Mail says the changes will require financial institutions to provide better disclosure about interest rates.

The government wants credit card companies to provide timely advance notice of changes to rates and fees, said the report.

However, the finance minister has reportedly ruled out tougher measures such as placing a ceiling on interest rates.

It comes a day after the U.S. Congress wrapped up legislation restricting when and how a credit card company can raise an individual's interest rate, who can receive a card and how much time people are given to pay their bill.

U.S. President Barack Obama is expected to sign it into law on Friday.

Banks, which oppose the legislation, will need to make up the cost somewhere, and cardholders who pay off their balance in full each month could see new annual fees and lucrative rewards programs cancelled.