Credit Card Reforms | The Frugalista

Credit Card Reforms

by frugalista on June 23, 2010

Hey, pretties! So, there are more credit card reforms underway, so I wanted to highlight a few of them today in this blog post. Also, later on today, I am hosting a #dealchat at 8 p.m. est on Twitter about credit cards. I have experts from creditcards.com and Card Analysis for everyone to ask questions about credit cards.

A new set of credit card regulations will take place on Aug. 22. Recently,the government nailed down what the new regulations will be:

New Rules from the Feds:

*Your credit card company cannot charge you a fee of more than $25 unless:
One of your last six payments was late, in which case your fee may be up to $35; or your credit card company can show that the costs it incurs as a result of late payments justify a higher fee.

*Your credit card company cannot charge a late payment fee that is greater than your minimum payment. So, if your minimum payment is $20, your late payment fee can’t be more than $20. Similarly, if you exceed your credit limit by $5, you can’t be charged an over-the-limit fee of more than $5.

*One-fee limit. Your credit card company can’t charge you more than one fee for a single event or transaction that violates your cardholder agreement. For example, you cannot be charged more than one fee for a single late payment.

*If your credit card company increases your card’s Annual Percentage Rate (APR), it must tell you why.

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

What do you think about these changes? See you at #dealchat tonight!

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