Last Significant Provisions From the CARD Act To Take Effect 8/22


The last of the significant provisions of the CARD act includes

? Requiring penalty fees to be ?reasonable and proportional to the omission or violation? (no more outrageous late fees, etc.)
? Prohibits the credit card issuers from charging a penalty fee of more than $25.00 for being late on a payment or other violations unless the cardholder has ?repeated violations?
? Creditors must periodically review all interest rate increases that have taken effect since January 2009 and reduce rates when ?warranted? (what exactly does ?warranted? mean? It?s probably not wise to hold your breath waiting for an interest rate reduction.)
? Limits inactivity, dormancy and service fees associated with gift cards. New gift cards cannot expire for at least 5 years.
? Prohibits penalty fess that exceed the dollar amount of the violation.