Can the bank charge a late fee on my credit card? Yes, if either of the following is true:

* your payment is late or
* your payment is for less than the minimum amount due.

For more information, please review your Account Agreement or contact the lender for an explanation.


Can the bank charge a fee for a cash advance on my credit card? Yes, if it was disclosed in the account agreement, the bank can charge you a fee for a cash advance. You should review your agreement or contact the lender for an explanation.


I closed my account. Can the bank continue to charge interest and fees? Yes, you may be responsible for certain interest charges and fees.

Even though you paid off and closed your credit card account, it is possible that the bank may charge you “residual interest" for the days in the billing cycle before you paid the balance in full. Residual interest is interest that accrued, when you were not eligible for a grace period, from the first day of the billing cycle in which you paid the balance in full until the date that the bank credits your payment.

For example, you have been carrying a balance for three billing cycles. You receive your account statement reflecting a $1,000 balance. The minimum payment is $50 and it is due on the 25th of the month. You decide to pay the balance in full. The payment is credited on the 24th.

Even though you paid off the $1,000 before the payment due date, your account agreement may allow the bank to charge you for the residual interest that accrued from the first day of the billing cycle until your payment was credited on the 24th day.

Not all banks charge customers residual interest and some banks waive such interest. You should review your account agreement for information on how finance charges are calculated on your account and/or contact your lender.

Additionally, the bank generally should not charge you fees once you have closed your account unless the fees are because of something that occurred before you closed your account, such as a returned-check fee.

If you feel that the fees or interest were assessed in error, you should file a written billing error dispute within 60 days of the statement that showed the alleged error. The information on filing a written billing error dispute and the address to which the notice should be sent are listed on your periodic statement.


Can the bank charge me an over-the-limit fee? Beginning February 22, 2010, the bank can only charge you an over-the-limit fee if you have agreed to participate in its over-the-limit coverage program. The credit card company must give you certain disclosures before you agree to participate in its over-the-limit coverage program, including the amount of the over-the-limit fee. After you consent, the credit card company must provide you written confirmation of your agreement before it can charge the fee. The credit card company cannot require you to agree to over-the-limit fees but it can ask if you would like to participate. 

Whether or not you opt-in to over-the-limit fees, transactions that exceed the credit limit may be declined or approved at the credit card company’s discretion. If you do not opt-in to the over-the-limit fee and the credit card company allows a charge that exceeds your credit limit to go through, it cannot charge you an over-the-limit fee.

If you opt-in to allow transactions that will exceed your credit limit, you can only be charged one fee per billing cycle. Also, the bank cannot charge you an over-the-limit fee for more than three billing cycles for the same over-the-limit transaction.

You can revoke your opt-in choice at any time. The bank must tell you how to revoke your opt-in when it asks you to participate in the program and each time you are charged an over-the-limit fee. If you have questions about how to change your opt-in choice you should contact your credit card company.

What your credit card company has to tell you: * When they plan to increase your rate or other fees. Your credit card company must send you a notice 45 days before they can:

*increase your interest rate;
*change certain fees (such as annual fees, cash advance fees, and late fees) that apply to your account; or
*make other significant changes to the terms of your card.

If your credit card company is going to make changes to the terms of your card, it must give you the option to cancel the card before certain fee increases take effect. If you take that option, however, your credit card company may close your account and increase your monthly payment, subject to certain limitations.

For example, they can require you to pay the balance off in five years, or they can double the percentage of your balance used to calculate your minimum payment (which will result in faster repayment than under the terms of your account).
The company does not have to send you a 45-day advance notice if
o you have a variable interest rate tied to an index; if the index goes up, the company does not have to provide notice before your rate goes up;
o your introductory rate expires and reverts to the previously disclosed "go-to" rate;
o your rate increases because you are in a workout agreement and you haven’t made your payments as agreed.
* How long it will take to pay off your balance. Your monthly credit card bill will include information on how long it will take you to pay off your balance if you only make minimum payments. It will also tell you how much you would need to pay each month in order to pay off your balance in three years.

New rules regarding rates, fees, and limits

* No interest rate increases for the first year. Your credit card company cannot increase your rate for the first 12 months after you open an account. There are some exceptions:
o If your card has a variable interest rate tied to an index; your rate can go up whenever the index goes up.
o If there is an introductory rate, it must be in place for at least 6 months; after that your rate can revert to the "go-to" rate the company disclosed when you got the card.
o If you are more than 60 days late in paying your bill, your rate can go up.
o If you are in a workout agreement and you don't make your payments as agreed, your rate can go up.
* Increased rates apply only to new charges. If your credit card company does raise your interest rate after the first year, the new rate will apply only to new charges you make. If you have a balance, your old interest rate will apply to that balance.
* Restrictions on over-the-limit transactions. You must tell your credit card company that you want it to allow transactions that will take you over your credit limit. Otherwise, if a transaction would take you over your limit, it may be turned down. If you do not opt-in to over-the-limit transactions and your credit card company allows one to go through, it cannot charge you an over-the-limit fee.
o If you opt-in to allowing transactions that take you over your credit limit, your credit card company can impose only one fee per billing cycle. You can revoke your opt-in at any time.
* Caps on high-fee cards. If your credit card company requires you to pay fees (such as an annual fee or application fee), those fees cannot total more than 25% of the initial credit limit. For example, if your initial credit limit is $500, the fees for the first year cannot be more than $125. This limit does not apply to penalty fees, such as penalties for late payments.
* Protections for underage consumers. If you are under 21, you will need to show that you are able to make payments, or you will need a cosigner, in order to open a credit card account.
o If you are under age 21 and have a card with a cosigner and want an increase in the credit limit, your cosigner must agree in writing to the increase.

Changes to billing and payments

* Standard payment dates and times. Your credit card company must mail or deliver your credit card bill at least 21 days before your payment is due. In addition:
o Your due date should be the same date each month (for example, your payment is always due on the 15th or always due on the last day of the month).
o The payment cut-off time cannot be earlier than 5 p.m. on the due date.
o If your payment due date is on a weekend or holiday (when the company does not process payments), you will have until the following business day to pay. (For example, if the due date is Sunday the 15th, your payment will be on time if it is received by Monday the 16th before 5 p.m.).
* Payments directed to highest interest balances first. If you make more than the minimum payment on your credit card bill, your credit card company must apply the excess amount to the balance with the highest interest rate. There is an exception:
o If you made a purchase under a deferred interest plan (for example, "no interest if paid in full by March 2012"), the credit card company may let you choose to apply extra amounts to the deferred interest balance before other balances. Otherwise, for two billing cycles prior to the end of the deferred interest period, the credit card company must apply your entire payment to the deferred interest-rate balance first.
* No two-cycle (double-cycle) billing. Credit card companies can only impose interest charges on balances in the current billing cycle.

Disclaimer:

Credit cards issued primarily for business or commercial purposes generally are not governed by the consumer protections in the Truth in Lending Act or the amendments to that act in the Credit Card Accountability, Responsibility, and Disclosure Act of 2009.