SAN FRANCISCO, Calif. -- Consumers may get an early holiday present: this week, the Federal Reserve votes on credit card reforms aimed at offering cardholders a bit of financial relief.

"It's probably one of the biggest changes, series of changes we've seen in the last 30 years," said Gary Schlossberg, a Wells Capital Management Economist.

It's been in the making for four years and could affect millions of credit card users.

"Some of these credit card companies are charging exorbitant interest rates,” said Scott Son, credit card user and San Francisco resident. “They make changes to the credit cards without asking you. You get some small notice in the mail that no one ever reads."

The Federal Reserve on Thursday takes up new proposals on how banks operate credit cards, including:

- New limits on interest rate hikes - Fewer penalty fees - More time to make card payments - And an end to a practice known as "universal default."

"Where credit card companies can raise your interest rate even if you always pay them on time, but you pay, say, your gas bill late. That would be ended," said Joseph Ridout, a Consumer Action spokesman.

"It certainly provides more transparency, more clarity for the credit card holder," said Schlossberg.

Card users could receive an extra week to pay their bill and 45 days notice before an interest rate increase.

"I think it would make a difference in terms of buying high-priced items. You get better rates and less restrictions and it looks like more time to pay," said Liz McArthur, a San Francisco resident.

Consumer advocates also applaud a proposal to end so-called "fee harvester" cards- in which cards offered to people with bad credit are piled high with fees.

"It's really something that can almost be considered a scam, a scam that's not been declared illegal yet but something that rips people off even worse than ordinary credit cards," said Joseph Ridout, a Consumer Action spokesman.

A spokesperson for the American Bankers Association, the banking industry's trade group, was unavailable for comments Sunday. But in a statement earlier this year, the head of the association, Edward L. Yingling, said, "We are deeply concerned that these rules will result in less competition, higher consumer prices, fewer consumer choices and reduced consumer access to credit cards. In short, everyday consumers will bear the real cost of these proposals."

Economists say the reforms may make it more difficult for banks to fund cards during the sour economy.

"Depending on what the rules are, how they're set up, their credit standards are likely to be tightened. They're likely to be tightened in any event because of the credit squeeze and the higher risk, with unemployment rates rising," said Schlossberg.

If the reforms are passed Thursday, it's unclear when consumers could expect some relief. A number of card-issuing banks have indicated they could need a year or years to reformat their computers to prepare for the reforms.