The Credit CARD Act: Fee Restrictions

We're continuing our week long series on the provisions of the Credit CARD Act. Yesterday, we reviewed the new laws that protect you from arbitrary, any time, any reason interest rate increases and account changes.  If you missed it, be sure to go back and check it out. 

Another major protection under the new rules make headway in curbing the excessive fees charged by credit card issuers.  Remember the days of over-limit fees?  Not any longer.  Here's what you need to know:

Fee Restrictions Under the Credit CARD Act:

• Credit card issuers cannot charge you an over-limit fee unless you consent to allowing over-limit transactions prior
  to the fees being charged. If you agree to accept over-limit
  transactions, only one over-limit fee per billing cycle is permitted.
• Card issuers may not charge additional fees for
  accepting payments by mail, phone or online – however, they can charge a
  fee to expedite a payment.
• If your due date
  falls on a weekend or holiday when payments are not accepted, your
  issuer cannot charge you a late fee if your payment arrives the next
  business day. In addition, payments made at a local office or branch
  must be credited the same day.
• "Fee harvester" or
  sub-prime credit card non-penalty fees cannot exceed more than 25% of
  the credit limit when you open the account.
• Your
  credit card issuer cannot charge a fee of more than $25 unless you were
  late with a payment in the last six months (in which case you may be
  charged up to $35); or the credit card issuer proves that the costs
  incurred as a result of your late payments justify a higher fee.
• Credit card issuers cannot charge you a late fee greater than your minimum payment. Beginning August 22, 2010
• Credit
  card issuers cannot charge you an inactivity fee for not using your
  card, including fees for not charging a certain amount each month. Beginning August 22, 2010

What you need to know: The
provisions haven’t stopped credit card issuers from creating new fees
or increasing existing fees on cash advances or balance transfers. The
fact is, credit card issuers have taken a big hit in their proverbial
wallets and they’re coming up with creative new ways to make up for the
revenue they’ve lost under the new provisions.

These new rules go to great lengths to put an end to excessive fees charged by credit card issuers, but does it do enough? Have you seen any new fees? We want to hear what you have to say. Share your thoughts in the comments section below.

Check back tomorrow for the next installment of our Credit CARD Act series where we'll fill you in on the new credit card protections for students under the age of 21.

Tagged as: Credit CARD Act, credit cards, fee harvester, fees, inactivity fee, over-limit, subprime

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