Law to boost credit fees: banks

Banks expect to raise credit-card rates and fees, reduce credit limits and require higher credit scores due to reform legislation passed this year, according to the Federal Reserve Board's October senior loan officer survey.

About 30 percent expect to increase the use of variable interest rates and decrease the use of fixed rates.

For prime borrowers, about 50 percent of survey respondents expect to increase interest rates, reduce credit limits and reduce loans granted to customers who don't meet credit-scoring thresholds. About 45 percent also expect to raise minimum required credit scores.

For non-prime borrowers, about 75 percent plan to boost interest rates, and about 60 percent expect to raise credit-scoring thresholds and cut credit limits.

Francine Knowles