Consumers Protected From Credit Card Company Abuse

While credit cards can lead to considerable debt, consumers are protected from harsh penalties

Shaun Plum
MoneyTips Contributor

Borrowing Credit Cards

Consumers Protected From Credit Card Company Abuse
March 23, 2016

When overused, credit cards can lead to a large amount of debt, leaving consumers unable to pay their monthly balances. This results in their credit score dropping and could lead to legal action being taken against them by the credit card company. However, there are several regulations in place that protect consumers from being too harshly penalized.

One of the biggest of these protections is fraud protection. Consumers who see errors on their credit card statements, especially if there are multiple charges in dispute, can quickly have their card deactivated and the charges investigated. If the charges are deemed fraudulent, the consumer is not responsible for any of the charges. If you believe there is a mistake on your credit report, you can resolve it with a single click using our credit correction service.

Consumers are also protected from being charged excessive late fees. When a consumer fails to pay their minimum payment by the date given, they will be assessed a late fee. However, most do not realize that this late fee cannot be more than their minimum monthly payment. It is also capped depending on inflation. In 2016, the first late fee may not be more than $27, and any late fees incurred within the next six billing cycles capped at $37.

A consumer’s payment due date must fall on the same date each month, making it easier for consumers to remember to pay their bills. If no mail is delivered on that date, mailed payments will still be accepted as on-time the following business day.

If you want more credit, check out MoneyTips' list of credit card offers.

Photo ©

  Conversation   |   7 Comments

Add a Comment

By submitting you agree to our Terms of Service
irene | 03.23.16 @ 18:25
This is really good news, credit card companies have taken advantage of people in the past when they are struggling
Steffanie | 03.23.16 @ 18:28
I know those fees can be awful. I am glad they are finally doing something about it.
Carla | 03.23.16 @ 18:30
I'm glad to see there is more protection now. I hate to see credit card companies charging crazy high fees for any reason. I use to go over our statements with a fine tooth comb. Fraud protection makes me feel better.
Erin | 03.23.16 @ 18:30
I'm glad to hear there are these protections in place. Still, it is up to the consumer to watch what they are spending and make sure the charges on their cards are legit.
Jane | 03.23.16 @ 18:30
These are great things to know. I had no idea the due date must always be the same date. And it's good to know if I make a late payment, I'm protected by the late fee not being allowed to be more than the minimum amount due. It's nice to read that consumers are being protected from big businesses taking advantage of them.
Meredith L | 03.23.16 @ 18:32
I did not know about the late fee cap. On the flip side of that, they may not be able to charge you outright but watch your interest rate rise significantly. One way or another, they will get your money...and they will try to bleed a stone. Consumers beware.
Sara | 03.23.16 @ 18:33
Nice to know that they are finally doing something about credit card companies taking advantage of people. Though if most people read the terms they would not have issues.
$commenter.renderDisplayableName() | 11.27.20 @ 05:22