Banking regulators have been trying for years to impost more rules on the banks that provide credit card services. Although I am usually against most federal regulatory interference, this is one area where I think something has to be done.

The Federal Reserve on Friday joined other U.S. banking regulators in backing new limits on certain billing practices by credit card companies.

The Fed approved a proposal that would generally prohibit credit card companies from increasing the annual percentage rate on a customer’s outstanding balance. It would also ban companies from reaching back to prior billing cycles when calculating the amount of interest charges in the current cycle, a practice known as double-cycle billing.

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The new plan would also bar banks, thrifts and credit unions from assessing a fee for paying an overdraft on a checking account, debit card purchase or ATM withdrawal unless they give consumers the right to opt out of overdraft payments.

The proposals also attempt the halt the practice of raising interest rates on a balance when a cardholder fails to make payments on an unrelated bill. The proposal bars banks from changing rates on existing balances, but can tell customers 45 days in advance it might raise rates.

I know many people who have been shafted by credit card companies. Granted, no one gets into credit card debt without knowing what they are getting into, but the way banks are screwing with interest rates on the cards is astounding.

I have a credit card that I have never been late in paying. I have never missed a payment. I have always paid above the minimum due. What happened to me? The bank raised my interest rate because of another issue was not related to my account with them at all, and then, when I paid off 1/4 of the balance, they lowered my credit limit because I was a risk. Ha!

It’s time someone put some limits on the banks. There is no reason for 32% interest rates on credit cards, and there is no reason to screw with people who are actually trying to pay the damn things off.

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