Federal Reserve has stated that banks are planning to intensify terms on credit cards in response to a recent law that is specifically designed to protect consumers from unexpected increase in rates.

A survey conducted by the Fed showed that most of the banks are planning to increase rates, reduce credit limits and move up annual fees for not only prime borrowers having good credit histories but also risky “non-prime” borrowers,

Banks have already started to increase the rates. Therefore, house is trying to bring new law into action as soon as possible.

Some of the new credit card provisions are soon to come into action from Feb. 22.

The reason because of which economy is not recovering is due to difficulty being faced by people and businesses obtaining loans.

They survey further showed that almost 26 percent of banks said that they tightened requirements and standards on home mortgage in the past three years. That was up by slightly from almost 22 percent in the survey published in August, but is significantly lower the peak of about 75 percent that conveyed tightening standards and requirements for such loans in July 2008.

Only over 30 percent of banks showed tightening standards on nontraditional mortgages, consisting of, adjustable-rate loans with multiple-payment options. That’s less from almost 46 percent in the previous survey conducted.

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