Credit Card Penalty Fees Capped at $35 After August 22
Final details regarding the last piece of the Credit CARD Act's new rules fell into place during June, as regulators announced streamlined penalty fee structures for late payments and overlimit charges. On August 22, all credit card issuers must cap their penalty fees at $25 for a first-time event, or $35 when the cardholders violate policies more than once within a rolling six month period. Furthermore, the rules cap an overlimit charge to the specific amount of the transaction that causes a cardholder to exceed their credit limit.

Few consumers are likely to experience overlimit charges beyond this summer, after the Credit CARD Act's new opt-in policy have taken effect. Under that rule, a cardholder must request that their credit card issuer allow certain charges beyond their usual credit card limits. Few consumers have responded to card issuer requests to opt in, leading some market analysts to grow concerned about the banking industry's shrinking profits.

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Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.