Asia Bizz: New Credit Card Rules See Consumers Safeguarded From Unreasonable Late Fees
The Credit Card Act in USA, which President Obama a year ago is set to come into action this Sunday. The new credit card rules aim at protecting people from fraud practices.
Reports say, that as part of the new guidelines for credit card users, penalty fees are likely to come into affect. Late fees will be charged $25 and a second late fee in the next 6 months, will be $35. Besides this, credit card companies must come up with a rate reduction every six months, but it all depends on the banks.
In addition to the this, reports also say that the credit card company is not in a position to charge an inactivity fee. In cases where the company is likely to increase the interest rate, a reasonable explanation must be provided.
