Fed Adopts Rules to Protect Credit Card Customers
June 15, 2010 - 5:45 PMThe Federal Reserve has adopted rules aimed at protecting credit card customers from getting socked by lofty late payment charges and other penalty fees.
The new rules will bar credit card companies from charging a penalty fee of more than $25 for paying a bill late. They prohibit credit card companies from charging penalty fees that are higher than the dollar amount associated with the customer's violation. They also ban so-called "inactivity" fees when customers don't use the account to make new purchases and they prevent multiple penalty fees on a single late payment.
The rules take effect on Aug. 22.
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