Good news for reformers
By Alina Dizik – The Credit CARD (or Card Accountability Responsibility and Disclosure) Act of 2009, which helps regulate credit fees for borrowers, now saves consumers $20.8 billion per year,
Under the law, companies can no longer charge borrowers inactivity fees or hike up late or overlimit fees, and they are required to offer more-transparent fee structures. After the law was introduced, late fees dropped by 1 percentage point within the year.
The legislative limits are particularly effective when it comes to less-financially-savvy consumers who have trouble making sense of confusing fee structures. “The regulation of fees has the largest effect on the borrowing costs of consumers with the lowest FICO [credit] scores.” more> http://tinyurl.com/pcfq9ky
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