Credit Card Crackdown

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Story Published: May 2, 2008 at 6:40 PM MDT

Story Updated: Nov 20, 2008 at 8:18 PM MDT

By Danielle Leigh

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You may remember, Monday we told you several credit card companies were raising their rates even for responsible card holders.

Now federal regulators are proposing a crack down on the companies and trying to save us some serious cash.

The Federal Reserve is pushing for new rules that would limit these credit card companies' ability to raise rates.

Under the proposal, credit card companies will have a much harder time raising rates and limiting how long we have to pay off our credit card debt.

That means the recent rate increases by financial institutions like Washington Mutual and Discover won't be allowed.

The rules would also bar double cycle billing, and prevent companies from charging extra fees for overdraft payments.

Some are calling the proposals the most far reaching crack down on credit cards in decades.

"These rules are intended to protect consumers from unfair or deceptive practices," says Federal Reserve Chairman Ben Bernanke.

Right now you have 75 days to give the feds your opinions on the proposals.

If you'd like to comment go to the Federal Reserve's website at www.federalreserve.gov.

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