New rules were adopted Tuesday by the Federal Reserve to protect consumers against aggressive late-payment fees and other penalties assessed by credit card companies. The new rules bar credit card companies from charging a latre fee greater than $25 and also prohibit charging penalty fees that are greater than the dollar amount associated with credit card holder’s violation. Also prohibited are so-called “inactivity fees” for lack of use of a credit card, and multiple penalty fees on a single late payment.
These latest rules will take effect August 22nd. For an overview of changes under the 2009 Credit CARD Act of 2009, which took effect this past February, see New Credit Card Rules in Effect.