The Federal Reserve today approved proposed rules to end credit card issuers' ability to apply payments to the lowest interest balances first.
The proposed rules implement the law passed by Congress in May that overhauls credit card rules.
The rules would also ban interest rate increases during the first year after an account has been opened or on an existing balance. Also, they would ban the issuing of credit cards to minors without permission of a parent or guardian or demonstration of the ability to pay.
The rules would also ban double-cycle billing and limit fees associated with subprime credit cards.
The proposed rules would implement the provisions that go into effect on Feb. 22, 2010.
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