Saturday, August 14, 2010

Next Week's Credit Card Changes

You have heard of all the changes that were outlined in the CARD act of 2009 that went into effect February 22, 2010.

Well, credit card companies were forced to make additional changes that affect consumers which go into effect August 22, 2010. Here is a highlight of some of the changes developed by the Federal Reserve that may affect you.

1. If you make a late payment credit card companies can only change up to $25 for fee unless one of your last 6 payments was late or they can provide justifiable cause that the costs it incurs as a result of a late payment require charging more than $25. If you repeatedly make late payments you can be charged a higher fee but no more than $35.

2. You cannot be charged a late payment fee greater than your minimum monthly payment. This also applies to over-the-limit-fees.

3. You will no longer be charged inactivity fees for not using your credit card.

4. You will not be charged more than one fee for multiple offenses such as a late payment and over-the-limit. Some consumers were being charged multiple fees which made it impossible to stay current on their monthly bills.

5. Credit card companies must explain in detail any rate increases and must reevaluate your interest rate every six months. This will be helpful for those who made late payments in the past but are now current on their payments. If the evaluation determines that you can receive a lower interest rate, it must be applied within 45 days after the evaluation.

1 comment:

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