June 15, 2010 

Perlmutter Announces New Credit Card Rules To Begin in August

Washington, DC - Today, U.S. Rep Ed Perlmutter (CO-07), a member of the House Financial Services Committee, announced new rules will go into effect to protect credit card customers from getting hit with high late payment charges and penalties.

Today, the Federal Reserve put in place tough consumer protections for credit card users as directed by Congress in the Credit Cardholders’ Bill of Rights – legislation signed by President Obama last year.  The rules will take effect on August 22, 2010.

Perlmutter stated, “It’s time to end these unfair, deceptive, and anti-competitive credit card practices.  Week after week at my grocery store meetings, in the neighborhoods, and even with my own family, I hear stories about the hidden fees, double billing, and unpredictable interest rates they experience with their credit cards.  These are very real problems facing not just high risk or low income credit card users, but all credit card users.  These rules respond to my and my constituents’ outrage over these predatory practices.”

The new rules the Federal Reserve is issuing as a result of the Credit Cardholders’ Bill of Rights include:

•  Barring credit card companies from charging a penalty fee of more than $25 for paying a bill late; 
• Prohibit credit card companies from charging penalty fees that are higher than the dollar amount associated with the customer's violation; 
• Require credit card companies to reconsider interest rate hikes they jammed in place before the new law took effect;
• And along with overdraft limits by the Federal Reserve, will save U.S. consumers at least $5 billion in fees this year at the largest U.S. retail banks and credit card companies.

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