New credit card rules going into effect

As the new credit card rules passed by Congress are slated to go into effect on February 22nd, consumers should be on the alert for loopholes in the law.

For example, although interest rates on existing balances are no longer supposed to be arbitrarily raised, there is no actual federal cap on high high the rate for new purchases or cash advances can go.

While fees will no longer be allowed to exceed 25% of the initial card limit, there is no also cap for charges denominated as “penalties” rather than fees.


By Doug Beaton

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