Similarly, most credit cards do not charge interest on any purchases if a borrower pays the entire balance due within a short one-month grace period, but do charge interest on all purchases if she revolves even $1. To protect borrowers, new regulations restrict these and other practices involving large penalties: in July 2008 the Federal Reserve Board severely limited the use of prepayment penalties, and the Credit CARD Act of 2009 prohibits the use of interest charges for partial balances the consumer has paid off, and restricts fees in other ways. Opponents have argued that these regulations will decrease the amount of credit available to borrowers and.
