• Federal rules are limiting card issuers' powers.credit cards image by Aleksandr Lobanov from Fotolia.com
  
  The average American household carries more than $15,000 dollars in unsecured debt. Nearly $8,000 of this amount is made up of credit card debt. The debt problem in America is rising. The federal government has put rules in place to monitor fees, ability to pay, age and rates. This protects the consumer from hidden costs, penalties and attempts to control who is getting credit.
  
  

Ability to Pay

• Under the Federal Deposit Insurance Corporation rules, section 226.51, the credit card issuer must consider the applicant's ability to make payments before issuing a line of credit or raising an already existing line of credit. The credit card issuer must consider either the income to debt ratio or the debt to assets ratio. This prohibits credit card issuers from granting credit to consumers that cannot afford it.
  
  

Age

• Credit card issuers are now heavy restricted in granting credit to applicants under the age of 21. If the applicant is under 21 they must show either that they are emancipated with a suitable income to afford payments or that they have a cosigner on the account that is at least 21 years of age and agrees to take secondary responsibility for the account.
  
  

Payment Allocation

• Under the Federal Deposit Insurance Corporation Law, card holders that pay above the minimum payment can expect that the amount above the minimum will be applied to the balance. There are exceptions to this rule, for example, with cards that offer a deferred interest program.
  
  

Over the Limit Fees

• The Federal Deposit Insurance Corporation sets limits on when card issuers may impose over the limit fees on credit card accounts. They state that the card holder must be notified in writing of the charges for going over the limit at the time they open the account. They must also allow time for the card holder to opt out of the rule and allow them time to search for other card options.
  
  

Interest Rate Increases

• Credit card issuers are now limited in raising the rate of interest on a credit card account. Under the FDIC rules, the card holder must be informed and allowed time to opt out or search for another provider. The issuers are also not allowed to raise rates within the first year except in the case of a specified period. For example, credit card companies are allowed to offer low interest, introductory offers for a specified period of time. However, potential account holders need to be told the rate of increase after the time has expired.