Good news: Last phase of credit card reform law in place, taking aim at penalty fees

[quiet.american]

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/23/AR2010082302260.html">WaPo: Last phase of credit card reform law in place, taking aim at penalty fees

The final phase restricts how much card issuers can charge in penalty fees compared with the amount of the violation. For example, if you are late paying a credit card bill with a $10 minimum payment, the penalty charge cannot be more than $10. In addition, new rules governing gift cards also took effect Sunday that require them to be honored for at least five years and allow only one fee per month.

Congress passed the Credit CARD Act last year, which set up a rolling timetable to phase it in. The bulk of the law's provisions took effect in February and prevented issuers from raising interest rates on existing balances, among other changes.

The American Bankers Association, an industry trade group, called the implementation of the law a "transformative process that signifies a fundamental change for both consumers and the industry."

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:dem: :thumbsup: GoDems! GObama! :fistbump:

[Tarheel_Dem]

1. Thanks for posting this q.a. The fact that these changes will affect

most of America, surprisingly you don't hear a lot about them in the M$M. Go figure. I especially like the fact that the usurious banking fees will be now be minimized, and that's great news for me.

[quiet.american]

3. Amen to that, Tarheel_Dem - doing something about those fees has been a long time coming.nt

[Peacetrain]

2. We got a notice in the mail recently from our credit card company

telling us that they can no longer increase your rates if you are late in making a payment.. whew..:fistbump:

[quiet.american]

4. That's great to hear about! nt