New credit card regulations from the government may have already affected young people, and the Federal Reserve Board announced new rules recently that affect these accounts.
According to the central bank, credit card companies will have to review interest rate increases made since January 1, 2009. If the causes of these interest rate rises have changed, issuers will have to consider reducing them to their previous levels, which may help some people get out of debt.
The new Fed rules – which will be enforced starting August 22 – also limit how much credit card companies can charge for late and penalty fees. Consumers will no longer be charged more for a late fee than is due on their minimum payment.
"For example, card issuers will no longer be permitted to charge a $39 fee when a consumer is late making a $20 minimum payment. Instead, the fee cannot exceed $20," the Federal Reserve said.
New rules for these accounts came from the Credit Card Accountability, Responsibility and Disclosure Act, which includes stipulations for younger people. Those under 21 will have to get a co-signer when applying for credit, or will have to prove they have sufficient funds to support payments.