Federal Reserve Approves Final Credit Card Rule Changes
The Federal Reserve Board approved a final rule this week in order to protect credit card users from unreasonable late payment and other penalty fees. They go into effect on August 22. The terms are highlighted below.
Final Credit Card Rule Changes
Source
Federal Reserve
New Credit Card Laws
Final Credit Card Rule Changes
- The issuer may not charge a penalty fee of more than $25 in late fees or for other account term violations unless specified circumstances exist.
- The issuer may not charge penalty fees in excess of the monetary amount associated with the consumer's violation.
- The issuer may not impose multiple penalty fees based on a single late payment or violation.
- Rates that were increased prior to January 1, 2009 must be evaluated and the rate reduced if applicable.
Source
Federal Reserve
New Credit Card Laws
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