New Credit Card Rules Benefit Consumers

New rules that restrict credit card fees will go into effect Aug. 22 according to a Federal Reserve announcement. The amount credit card companies can charge cardholders who make a late payment, is capped at $25, down from the current $39. Credit card companies will be prohibited from charging a fee that is more than the amount of the late payment or other violation. Credit card companies will not be allowed to charge inactivity fees or several different fees for a single violation. Next month, new disclosure requirements will take effect, as a result of the, “most sweeping overhaul of the industry since the invention of credit cards," says the American Bankers Association's Kenneth Clayton.