MoneyWise :: Final phase of credit card law begins

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Released: August 22, 2010

Final phase of credit card law begins

Source: Ylan Q. Mui, Washington Post

he final phase of the landmark federal legislation that placed new restrictions on credit card interest rates and fees takes effect Sunday. Though the bulk of the law’s provisions were enacted earlier this year, there are still a few important changes you need to be aware of:

The law required the Federal Reserve to write regulations outlining how much credit card companies can hit you with for things such as late payments or over-the-limit purchases. The new rules ban them from charging fees that are larger than the infraction. For example, if you are late on a $20 payment, your penalty fee cannot be more than $20. Or, let’s say you spend $5 more than your max. The charge for that cannot be more than $5.

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