The Federal Reserve is expected to approve new rules Friday that prohibit some of the credit card industry's billing practices. Among other things, the changes prevent card companies from arbitrarily raising the interest rate on cardholders' outstanding balances.
Card companies would also have to change the way they apply customer payments. Right now, if the balance is subject to different interest rates, banks and card companies can apply the entire payment to the lower rate. Under the new rules, they would not be able to do that.