The Final Consumer Protection Regulations in the CARD Act
Laura Adams, MBA
Quick Tip: The Final Consumer Protections in the CARD Act
The final set of regulations from the CARD Act (Credit Card Accountability Responsibility and Disclosure) took effect last month. They limit fees and interest rates that credit card issuers can charge by:
-
putting a ceiling of $25 on first-offender late fees that occur within a six-month period;
-
banning inactivity fees (even though they can still close your account);
-
prohibiting multiple fees based on one transaction;
-
requiring a 45-day waiting period before hiking interest rates due to a late payment;
-
rolling back pre-penalty interest rates if you make on-time payments for six months; and
-
eliminating inactivity fees on gift cards and requiring them not to expire before five years.
Credit Card image courtesy of Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.