New credit card rules go into effect

this is important to take into consideration LOS ANGELES, CA (Catholic Online) - Penalty fees, or special charges incurred by late payments and other "transgressions" now have a cap of $25. Credit cards could previously charge anywhere from $35 to $39, regardless of how much was owed. In addition - a single violation can not result in more than a single fee.

However - and this is important to take into consideration - there is no outright ban on penalty fees over $25. A bank that wants to impose a higher fee must justify in doing so. A bank may provide analysis that costs associated with a late payment can be as high as $30. It's up to the banks to pursue this route. Another exception to the $25 cap is if a customer repeats the violation within six months . the cap then rises to $35.

In regards to rate increases, there are new protections. Banks must think now review a rate hike every six months to decide whether the increase is still warranted.