The long-awaited regulatory CARD act will go into effect this Sunday, August 22. The new regulations under the bill will protect consumers from questionable banking practices, according to the Chicago Sun Times.
Under the new rules, credit card issuers will be barred from charging late credit card fees of more than $25, with the exception of payments that are over six months late. In that case, the maximum fee will be $35.
Previously, companies were able to charge late fees of up to $39, no matter the minimum payment on the card. Companies must now re-evaluate their rate increases every six months, and adjust the rate within 45 days following the re-evaluation, if necessary.
"The proposed rules are intended to establish a new baseline for fairness in how credit card plans operate," said Ben S Bernanke, Federal Reserve Chairman. "Consumers relying on credit cards should be better able to predict how their decisions and actions will affect their costs."
These changes come as many U.S. citizens are finding themselves suffocating under mountains of debt. Those looking to live debt-free should create a budget and try to eliminate their usage of credit cards altogether, according to MSNBC.