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Article: Banks expected to tighten credit in response to law
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- November 10, 2009
- Author:
CopyrightCopyright 2009 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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WASHINGTON - Banks expect to tighten terms on credit cards in
response to a new law that aims to protect consumers from sudden
rate hikes, the Federal Reserve said yesterday.
A quarterly survey by the Fed found that many banks expect to
increase rates, reduce credit limits, and raise annual fees for both
prime borrowers - those with sound credit histories -as well as
more risky nonprime borrowers, who have tarnished credit. Banks also
expected to raise minimum credit scores for nonprime borrowers, the
Fed said.
Banks already have been pushing through rate increases in
anticipation of the new rules. Because of that, the House recently
approved legislation to speed up the law's effective ...