Released: May 25, 2007

Fees, rates up on credit cards in 2007

Source: Eileen Alt Powell, Associated Press [Houston Chronicle]

The average late fee on credit cards has soared to $28 in the United States, while penalty interest rates average 24.51 percent, according to a survey released Thursday by Consumer Action.

The San Francisco-based consumer watchdog’s report came a day after the Federal Reserve Board proposed sweeping revisions of the rules governing the way consumers are notified of changes to the terms of their accounts, including the way penalty rates are applied.

Consumer Action looked at the terms of 83 cards issued by 20 banks, including the top 10 U.S. card issuers.

The average annual percentage rate was 14.53 percent, up from 12.61 percent when the survey last was done in 2005. That largely paralleled the Fed’s boost in interest rates.

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