New fee restrictions included in the Credit CARD Act of 2009 are set to take effect this month. And one important change you may not have heard about yet mandates a new limit on the amount credit issuers can charge for late fees.
Effective August 22, 2010, your credit card company can no longer charge a late fee in excess of the minimum payment amount due on your monthly bill. So, even though your card may levy a $35 late fee under normal circumstances, the maximum late fee would be reduced to $15 if your minimum payment is also $15.
Likewise, credit card fees in general will be capped at $25 unless you were late making payment during the previous six months. In that case, credit issuers may still charge fees as high as $35.
