Credit card companies will soon have to comply with the new rules that is expected to be announced this coming Thursday.

The Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration are going to meet up and announce the new rule after it was proposed earlier this year.

Consumers are seeing this as a relief because they are going to enjoy a lot more benefit from this new rule. The changes were said to be the end for miseries such as late fees, universal defaults, confusing payment allocations for different balances and shorter payment periods.

Peter Garuccio, director of public relations at the American Bankers Association trade group commented, this new rule will pose as a challenge to credit card business. Interest rate for borrowers will probably see an increase while the borrowing limits will be reduced due to the changes.

With the U.S. economy in recession, market trading in credit card asset-backed securities will face increasing stress as more consumers will fall behind on payments.

Source: Reuters