Credit Card Accountability Responsibility & Disclosure

"New rules designed to protect credit card users from 'unreasonable late payment and other penalty fees' came into force Sunday as a result of the Wall Street reform bill -- the final provisions of federal legislation that placed new restrictions on credit card interest rates and fees, completing the most comprehensive overhaul of the credit card industry in history," CNN reported this morning.

"The rules block credit card companies from charging more than $25 for late payments except in extreme circumstances, prevent them from charging customers for not using their cards, and requires them to reconsider rate increases imposed since January 1, 2009, according to the Federal Reserve, which approved the regulations."

But the Wall Street Journal, also reported this morning that "the new credit-card rules that took effect Sunday limit banks' ability to charge penalty fees, coming on top of rule changes earlier this year restricting issuers' ability to adjust rates on the fly. Issuers responded by pushing card rates to their highest level in nine years."

"The moves are driven by a combination of forces," the Journal's article says. "The Credit Card Accountability Responsibility and Disclosure Act of 2009 has given card issuers less flexibility to raise interest rates as they wish. At the same time, issuers are still dealing with credit-card delinquencies that remain above historical levels."