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CFPB changes policy, no limit on upfront fees before credit card issued

By  |  April 12, 2012

The Consumer Financial Protection Bureau has revised its proposal to limit the upfront fees banks can charge consumers in the first year of holding a credit card, such as annual fees or application fees. The proposal called for limiting the total amount of fees to 25 percent of the cardholder’s credit limit. Limiting such fees was first proposed by the Federal Reserve in 2010.

However, the CFPB now proposes to eliminate limits on fees when applying for or activating a card. The 25 percent cap is to take effect only for those fees after the card is issued.

Full content: Associated Press via Businessweek

 

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