The Obama administration voiced support for the new conventions shielding American credit card holders on Monday. The new rules, part of a wider campaign to maximize consumer awareness, exist to protect cardholders from fees and rate increase.
The new guidelines from the U.S. credit card act. are designed to help people realize the cost of using a credit card beyond actual purchases. Both Treasury Secretary Timothy Geithner and President Obama have spoken out in favor of the rules, which were first approved in May.
The rules are deigned not only to help people understand using their credit card, but also to curb credit-card issuers like Bank of America Corp. and JPMorgan Chase & Co from increasing rates for late payments and charging over-limit fees.
"For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs," President Obama said in a statement.
It’s estimated that Americans pay approximately $15 billion annually in penalty fees.
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