From the Archives: April 2013

CFPB FINAL RULES: CFPB finalizes Credit Card Act Rule 

On March 22, the CFPB finalized an amendment to Regulation Z (which implements the Truth in Lending Act) to apply the limitation of the total amount of fees that a card issuer may require a consumer to pay with respect to a credit card account to 25% of the credit limit during the first year after account opening. Regulation Z previously stated that this limitation applied “prior to account opening and during the first year after account opening.”

The final rule is in response to a federal court ruling last year that had granted a preliminary injunction to block a part of the Federal Reserve Board’s 2011 rule from taking effect. The blocked part of the rule was the board’s amendment to extend the fee limitation of 25% of the account’s initial credit limit during the first year to also include fees incurred prior to the opening of the credit card account (such as an application fee).

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