New federal rules intended to shield consumers from costly anti-consumer practices – often called “greed” — in the credit card industry take effect on February 22, according to the Federal Reserve Board.

Among other things, the new rule taking effect February 22 will:

• Prohibit unexpected interest rate increases during the first year an account has been opened.

• Prohibit the issuance of credit cards to minors without proof of creditworthiness or the signed consent of a parent or cosigner.

• Require credit card companies to obtain a consumer’s consent before charging fees for transactions that exceed the credit limit.

• Ban creditors from using the “two-cycle” billing method to impose interest charges.

• Prohibit creditors from allocating payments in ways that maximize interest charges.

To help consumers learn more about the new credit card rules, the Federal Reserve has created “What You Need to Know: New Credit Card Rules,” an online publication explaining key changes consumers can expect from their credit card companies as a result of the new rules.

The final rule taking effect on February 22 represents the second stage of the Federal Reserve’s implementation of the Credit Card Act, enacted on May 22, 2009.