Wisconsin Senior Medicare Patrol

This month, new federal rules will limit just how much a credit card company can charge for extra fees.

The Credit Card Accountability Responsibility and Disclosure (CARD) Act prohibits credit card issuers from charging astronomical fees for late payments or over-the-limit balances.

What you need to know about the CARD Act:

• Credit card companies can’t charge more than $25 for a late payment. There are two exceptions to this rule: If you’ve paid late one time in the last six months, or the company can show their costs are higher because you  made your payment late.
• You cannot be charged if you don’t use your credit card. Some companies try to tack on a fee for inactivity, but that is no longer possible under the law.
• You cannot be charged multiple times for one infraction. For example, if one transaction takes you over your credit limit, the company cannot charge you five different fees as a result.
• If your Annual Percentage Rate of interest increases, credit card companies must re-evaluate those increases within six months. When appropriate, the rate must be reduced.
• Your credit card company MUST tell you why your rates increased.

Find out more:

http://www.federalreserve.gov/creditcard/