Fed to Make New Credit Card Proposal, Says Braunstein

Speaking Thursday before the House Subcommittee on Financial Institutions and Consumer Credit, Federal Reserve Division of Consumer and Community Affairs Director Sandra Braunstein emphasized a need for further consumer protection as it would pertain to credit cards.

Braunstein announced a proposal would come later in the spring under the Federal Trade Commission Act that would introduce new regulations into the industry in an effort to help further eliminate deceptive practices (following a June 2007 proposal) on the part of credit card issuers.

"Disclosure requirements can help ensure that consumers receive information about credit card terms in ways they can understand, in formats they can use, and at times when it is most helpful," she said. "Consumer testing has proven to be very useful in improving disclosure, but we have also concluded that stricter approaches in some areas may be needed."

By Ryan Szporer and edited by Cristina Markham