Credit Card Relief for All
Starting this week, credit card users have a reason to smile. New rules designed to protect consumers from “unreasonable late payment and other penalty fees” went into effect on Sunday. These new rules, which are the result of the Credit Card Act of 2009, represent the most comprehensive change the credit card industry has ever had to deal with.
Here are 7 ways the new credit card rules will benefit you. From now on, credit card companies…
1. Can no longer charge more than $25 for late payments, except in extreme cases
2. Can’t charge you for not using your card (commonly referred to as “inactive status”)
3. Will have to reassess all rate increases imposed since January 1, 2009
4. Can’t impose a penalty fee or “over the limit fee” that is more than the dollar amount you exceeded (example: if you exceed your credit limit by $2, your penalty fee can’t exceed $2.)
5. Are no longer allowed to apply multiple penalty fees to one late payment
6. Cannot raise interest rates on existing customers who pay their bills on time
7. Have to notify you at least 45 days in advance of interest rate increases and most fee changes
Thanks to the Federal Reserve’s newly imposed rules for credit card companies, customers can celebrate the small, but significant victories above.
While, this is indeed, a great win for the consumer continue to watch your credit card bills closely. Know your rights, and stay on the lookout for any new tricks the credit card industry may think of to take more of your money.