The Federal Reserve proposed tough credit card rules on Tuesday to protect consumers from potentially costly practices by lenders, and moved to put in place legislation enacted in May.
“This proposal is another step forward in the Federal Reserve’s efforts to ensure that consumers who rely on credit cards are treated fairly,” Elizabeth A. Duke, a Fed governor, said in a statement.
They would also ban “two-cycle” billing methods, where a creditor raises an interest rate and charges the higher rate for a customers’ previous borrowing....