In the past, making a late credit card payment was like forgetting your mother’s birthday. Repairing the damage could take months. Sometimes, years.
Now, though, the repercussions of a tardy credit card payment may not be as long-lasting or severe. Federal rules that took effect Aug. 22 limit the amount of late fees banks can charge. The rules also make it more difficult for banks to permanently raise your interest rate if you make a late payment.
The rules, adopted by the Federal Reserve Board in June, implement provisions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act that was signed into law last year.