Credit CARD Act Will Change Fees Next WeekMore new rules from the Federal Reserve regarding the Credit CARD Act mean more new credit card protections for you. And there are some key changes you should expect from your credit card company beginning next Sunday.
By: Meagan Millage, WDAZ
More new rules from the Federal Reserve regarding the Credit Card Act mean more new credit card protections for you. And there are some key changes you should expect from your credit card company beginning next Sunday.
Credit card companies now have limits on the amount they can charge people for late fees, inactivity fees, and over-the-limit fees. Most people I spoke with today are happy to see the changes.
"If the bank tried to stick me with big fees, I'd switch cards," Jeff Naeve from Park Rapids, MN said.
In one week, credit card companies can no longer charge customers big fees for things like late payments, inactivity, or spending over your credit limit. Companies can charge a maximum fee of $25, unless they can show that the costs it incurs as a result of late payments justify a higher fee.
"If they're taking advantage of people, especially in these times, if they're taking advantage of others 25 bucks to me sounds reasonable," Naeve said.
"I think that will be helpful, especially for like college students and stuff. Obviously we need to be more responsible with credit cards, but it does help I think, and I think it's good that they're doing that," Grand Forks resident Nick Reisenaur said.
The Credit CARD Act was signed by President Barack Obama in 2009 and its major provisions went into effect on February 22 of this year. The act protects consumers against rate hikes, minimum payments, and more time to pay your bill with clear due dates.
"I have a credit card and I've never experienced a late fee. But if I did I think its kind of cool that now in a week they won't be able to overcharge you," Ty Freeman of Grand Forks said.
Along with reasonable fees that are in proportion to a consumer's violation, credit card companies must begin reducing interest rates to previous levels after a six month review of payment records on accounts that have experienced an increased interest rate.