New credit card rules may help cardholders avoid high penalties and charges. Credit card holders have often been subject to, what many claim to be, outrageous charges, interest rate increases, and fees. Yet, credit card companies are now only allowed to charge penalties in the amount of $25 in most cases.
Also, the Federal Reserve has made changes in the way interest rates are increased and they are reviewing the interest rate increases that were made since January of last year. Card issuers cannot raise interest rates on current balances of cardholders if they are paying their bill and must notify customers at least 45 days in advance of an increase in interest.
Other changes include the elimination of fees that are charged when cardholders don’t use a particular card, a cap on fees so that they can’t exceed the dollar amount of the cardholder’s violation, meaning a cardholder can’t be charged more in penalties than the amount of the charge that is the cause of the penalty, and there is also the elimination of multiple fees on a single charge.
These new card rules are hoped to make life a little easier for credit card holders by keeping excessive fines from weighing down cardholders that typically keep their finances in order. While these new rules will not help those who have a history of credit card violations, it’s hoped these changes in the rules will make things easier on the average cardholder.