Credit Card Laws
Local News
by
Adam Uhernik
last edited on
Sunday, March 07, 2010
One of the ways credit card companies make money is by charging those over limit fees but a new proposal could cut into that.
Last week the Federal Reserve proposed strict limits on penalty fees credit card companies can charge customers for going over their limit. Terry Mills with Consumer Credit Counseling Service of the Black Hills says essentially the over limit fees will be dollar for dollar.
For example if you go over by ten dollars then your over limit fee is ten dollars.
"Last year they made 50-billion dollars on over limit fees. So hopefully that'll be reducing that amount to do that because if it comes dollar for dollar instead of the standard, it'll save the consumers quite a bit of money” Said Mills.
Mills says the rules will go into affect in August.