ST. PETERSBURG, Fla.-The "floor" has dropped from beneath credit card issuers with a surprise rules interpretation by the Federal Reserve, and now the race is on to meet a Feb. 22 deadline.

PSCU Director of Credit Card Services Glenn Schechter, told Credit Union Journal the ramifications from the Federal Reserve's UDAP regulations and Congress' 2009 CARD Act legislation have resulted in compressed margins for issuers due to a loss of flexibility to rapidly change pricing. The combination of the new regulations and laws mean credit card balances must be protected, or "grandfathered" in the case of a price change, and there has to be a 45-day notice given to cardholders.

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