Thursday, April 14, 2011

New Credit Card Rules Effective Aug. 22 | Credit card user's must know this

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More new rules from the Federal reserve means more new credit card protection for you. Here are some key changes you should expect from your credit card company from august 22, 2010:

Reasonable penalty fees:

Today your late payment fee may be as high as $39 and you likely pay the same fee whether you are late with a $20 minimum payment or a $100 minimum payment.

Under the new rules: Your credit card company cannot charge you a fee of more than @25 unless:

One of your last 6 payments was late , in which case your fee may be up to $35 : or

Your credit card company can show that cost it incurs as a result of late payment to justify the higher fee.


In addition , your credit card company cannot charge a late payment fee that id greater than you minimum payment. So if you minimum payment of $20, your late payment fee cannot be more than $20 similarly, if you exceed your credit limit by $5 you cannot be charged an over the limit fee of more than $5.


Additional fee protections:

No inactivity fees: Your credit card company cannot charge you inactivity fees, such as fees for not using your credit card.

One fee limit: Your credit card company cannot charge you more than one fee for a single event or transactions that violates your card holder agreement. For example you cannot be charged more than one fee for a single late payment.


Explanation of rate increase:   

if your credit card co. increases your card's APR , it must tell why.

Your credit card company increases your APR , it must re-evaluate that rate increase every six months. if appropriate , if must reduce your rate within 45 dates after completing the evaluation.