Nearly two years ago, I blogged on this site about some of the financial challenges I faced while on a two-week trip in Europe. Other than pay toilets and the large minimum amount required to use a credit card, an issue I frequently encountered in France was the lack of acceptance of American credit cards on the metro ticket machines.

Chip-and-PIN cards, which are popular in Europe, hold a very special place in Emily’s heart.

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Come August 22, there will be a series of new rules in place, intended to further protect credit card holders, thanks to the good people at the Federal Reserve.

Late Fees Capped at $25

Late fees will generally be capped at $25, instead of the near-$40 currently charged by many of the nation’s leading credit card issuers.

There will be exceptions if the card holder is a repeat offender, or if the card issuer can prove the higher fee is reasonable.

Fees Cannot Exceed Dollar Amount Tied to Violation

Card issuers will also be prohibited from charging a fee that exceeds the dollar amount associated with the consumer’s violation.

For example, a card issuer can’t charge a $25 late fee if the card holder’s missed minimum payment is only $20.

Same with an over-the-limit fee – if you only go over by $5, the card issuer can only charge $5.

Multiple Fees on Single Violations Prohibited

Additionally, card issuers will not be able to charge multiple fees for a single violation, such as a single missed payment.

Inactivity Fees Banned

Credit card issuers will also be barred from charging “inactivity fees,” a strategy that was actually recently employed to recoup losses from the first set of new credit card rules.

Finally, card issuers who raised consumer’s rates since January 1, 2009 will need to evaluate if the reason(s) behind the increase has changed, and if so, reduce the rates.

I wonder how the credit card issuers will make up for all the lost profit?  Look out for new tricks folks…

Underbanked Americans leaning towards prepaid cards as opposed to traditional lines of credit

Given the growing number of underbanked individuals – those that turn away from traditional banking products such as debit and credit cards – more banks are considering tapping into more alternative products, such as prepaid cards, in an effort to reach out to this demographic. Current figures reveal that 43 million Americans are considered underbanked, according to market research and consulting firm MarketsandMarkets.

Statistics show that the unbanked and underbanked spend a combined $10.4 billion on an annual basis on nearly 324 million alternate financial services, including payday lending, check-cashing facilities, non-bank money orders, refund-anticipation loans and rent-to-own agreements. Read full article…

The rising cost of getting married is leaving many newlyweds in huge amounts of debt, it has been revealed.

A survey by wedding expert Anne Mihelakos of truebride.com.au found that the average cost of an Australian wedding now stands at $28,000, the Advertiser reported.

The most expensive wedding last year stood at $130,000 while the cheapest was $3,000, the poll also discovered.

Ms Mihelakos noted that the average Australian wedding goes about 15 per cent over budget.

Such news may interest Aussies wishing to compare credit cards and control their debt levels. Read full article…

Almost half of credit card customers and 86 per cent of loan customers have not reviewed their balance or monthly payments in the last 12 months.

Research from Capital One has found that, despite nearly 90 per cent of UK adults claiming to be confident about the way they manage their personal finances, many are not taking simple steps to stay in control of their credit card and loan debts.

The study also discovered that more than half of consumers have not checked their credit rating, even though free credit reports are readily available online, and 21 per cent are unaware that missing a payment on a credit card, loan, or other borrowings, can damage their credit score.

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