New Credit Card Regulations Protect Consumers
By: Dylan Brooks
Updated: August 23, 2010
New rules are now in effect to protect consumers from banks charging them with unreasonable or unexplained credit card fees.
The new rules are the third phase of reforms passed by Congress last year. The new law prevents card issuers from imposing inactivity fees, increasing interest rates without explanation or charging multiple fees for the same error.
It also puts a $25 cap on late fees if they're only assessed one time during a six month period. Additionally, the new regulations ban fees that are larger than the debt.
The new rules are the third phase of reforms passed by Congress last year. The new law prevents card issuers from imposing inactivity fees, increasing interest rates without explanation or charging multiple fees for the same error.
It also puts a $25 cap on late fees if they're only assessed one time during a six month period. Additionally, the new regulations ban fees that are larger than the debt.
