New Credit Card Law Takes Effect

I read an article in the Huffington Post this afternoon about the new highly talked about credit card law that's taken effect.

This is great news for many credit card users, especially in today's economy. The first late payment fee cannot exceed $25 and fees cannot exceed the amount which is actually due.

However, credit card companies are allowed to increase these fees if the credit card user continues to make late payments.

Other credit card changes that recently became effective include the dis-allowment of multiple penalty fees for any single transaction. In addition, cardholders cannot be charged an "inactivity fee" for not using their account for a certain period of time.

Many fees and rate changes that previously were charged or changed without clear notification to the user now require full disclosure, including advance notification and explanations to the cardholders in writing.

These recent changes will most definitely help credit card users, but also will help in clearing up misunderstandings and miscommunications between cardholders and credit card companies, which should improve business for credit card companies as well.