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Owners of credit cards like, American Express, Visa, MasterCard and Discover card are experiencing the benefits of new government regulations that affect credit card companies in America. The recession made it extremely difficult for many Americans to pay their bills and credit card companies were initiating exorbitant amounts of fees and penalties on the consumer for paying a bill late or paying less than the minimal payment denoted. The government passed legislation to control credit card company fees and penalties. The government enacted new regulations last year to decrease the power of the credit card companies regarding late fees and penalties and the American consumers are feeling the reprieve. Benefits include lower interest rate hikes on many credit cards and when a late fee is required, the credit card companies now have limits to what they can charge. Specifically, the Consumer Financial Protection Bureau which was newly constructed, posted data reveals the questionable billing practices of many credit card companies has been curtailed. According to the bureau, the above average and unacceptable credit card penalty charges have dramatically decreased. Before the regulations were instituted by the federal government, cardholders were paying an average of just over $900 million in late fees and penalties. After the regulations were initiated and in place, credit card holders were paying much less. The average amount card holders are paying out now for fees and penalties comes to approximately $427 million according to the Consumer Financial Protection Bureau. The watchdog and enforcing power of the bureau appears to be effective and is helping American consumers recover along with our nation’s economy. Author: Stephen Johnson
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