Changes welcomed by consumer advocates; details, timing are key

WASHINGTON: Cash-strapped consumers can expect a special delivery this holiday season: sweeping new rules on credit cards.

Federal regulators will unveil final rules within the next several weeks to restrict credit-card practices seen as unfair or deceptive. Proposals would prohibit institutions from practices such as: increasing rates on an outstanding balance, except under limited circumstances; applying consumers' payments over the minimum to maximize interest charges; and requiring a reasonable amount of time for consumers to make payments.

Consumers have spoken loudly in favor of curbing aggressive pricing. They've posted tens of thousands of comments on the Federal Reserve's Web site, complaining about predatory lenders.

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