New Credit Card and Gift Card Consumer Protection Beginning August 22
Credit Card Issuers Will No Longer be Allowed to Charge You a Late Payment Fee…
Starting August 22, new regulations will go into effect that will help limit credit card and gift card fees and require banks to periodically re-evaluate credit card interest rate hikes to see if higher rates are still justified. The new regulations implement consumer protections required under the CARD Act passed by Congress last year.
“Consumers are tired of getting stung by unreasonably high fees and getting penalized for such dubious reasons as not using their credit card enough,” said Pamela Banks, Senior Policy Counsel for Consumers Union. “These new protections will prohibit so-called inactivity fees and help put an end to excessive credit card fees that unfairly penalize consumers when they are late making a payment.”
The new regulations implement a number of important consumer protections, including:
Limits on the size of late fees: Credit card issuers will no longer be allowed to charge you a late payment fee that is larger than your minimum payment. Banks also cannot charge a late fee higher than $25 unless one of your last six payments has been late or if the bank can show that the costs associated with the late payment justify a higher fee.
Full article: New Credit Card and Gift Card Consumer Protection Beginning August 22
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Tags: Consumer Protection, Consumers Union, Credit Card Issuers, Credit Cards, Gift Cards, Late Payments, Pamela Banks
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