The Federal Reserve has released new rules that will limit most credit card penalties to $25 and eliminate fees for card holders who do not use their cards. The central bank also ordered a review of increases in cards' interest rates that have taken place over the past 18 months. Scott Talbott, senior vice president of government affairs for The Financial Services Roundtable, warned that the limit on penalties would hinder credit. "The restrictions in the rules the Fed issued will decrease the ability of the credit card industry to price for risk and the net effect will be a decrease in [credit] availability," Mr. Talbott said.
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