Washington, DCConsumers received a bit of good news when the Federal Reserve recently capped most credit card late fees and other penalties at $25.
In addition to limiting credit card penalties, the Fed eliminated fees for consumers who don't use their cards according to the rules it recently released, according to CNNMoney.com. The Federal Reserve also ordered a review of all interest rate hikes that have taken place since January 2009 to ensure that credit card companies did nothing unseemly in the credit cutback caused by the recession.
These rule changes could result in lower interest rates for consumers as credit card companies are forced to justify their rate hikes over the past 18 months. If there is no longer any reason for the increases then they will have to reduce rates.
"The Federal Reserve's guidelines issued today are great news for consumers," Representative Carolyn Maloney, a New York Democrat and one of the authors of the credit card laws, told the news source.
Among the regulations included in the laws, the $25 penalty cap will most likely be the provision most credit card users notice.
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