Fed expects higher interest rates for consumer credit cards

Banks continue to take advantage of the waiting period for the CARD Act to lower credit limits, increase interest rates, and raise the minimum credit scores required for a credit card during the past three months, according to the quarterly survey released this week by the Federal Reserve.

This survey of loan officers also found 75% of banks that make credit card loans do not expect to be compliant with the provisions of the legislation until February 2010, the month these reforms go into effect.