New Credit Card Rules

Many people may be interested in learning about the new credit card rules. One important thing to know about these rules is that they were created to protect the consumer. Changes have been made so that credit card companies cannot take advantage of consumers with high fees and rates.

1. Practical late fees. Late fees is something that any consumer can be subject to, however the amount of late fees a credit card company can collect has changed. Before, credit card companies could charge up to 39 dollars in late fees, no matter how much the minimum payment was. This often left people paying late fees that often exceeded the minimum payment amount. With the new rule, if you have a minimum payment of twenty dollars, the late payment fee cannot be more than twenty dollars. Consumers also cannot be charged an over the limit fee that exceeds the amount that went over the limit.
2. No inactivity fees. Some credit card companies have been able to charge fees for a consumer not using their credit card. The new rules keep this from occurring. There is no longer any valid reason to charge a cardholder for not making purchases on their card within a certain amount of time.
3. One fee limitation. It is now against the cardholder agreement for any credit card company to charge more than one fee for a single transaction or occurrence. For instance, only one fee can be charged for a single late payment. The credit card company cannot charge an additional late fee or service fee later.
4. Explanation of increases in Annual Percentage Rate. Another rule that the credit card company must follow is that if they increase a card holder’s APR, they must notify them.
5. Re-evaluation of recent rate increases. The credit card company used to be able to increase the APR rate and never had to re-evaluate the increase. Under the new rules, the credit card company must re-evaluate any APR increases every six months. Then the company must appropriately lower the rate within 45 days, if necessary.