Purpose

• The purpose of the proposed legislation is to place additional protections on the consumer by banning abusive credit systems around the United States.
  
  

Committee

• The bill was revised and reported by the House Financial Services Committee under the direction of U.S. Rep. Barney Frank (D-Mass.).
  
  

Canceled Cards

• Under the new legislation, consumers canceling their credit cards before paying them off will not be subject to future increases in interest rates and other fees.
  
  

Fees And Charges

• In addition, the new bill offers additional protection by setting limits on what fees and charges credit card companies are allowed to charge while also providing additional protection against on-time payment penalties.
  
  

Over-Limit Penalties

• The Act also provides that consumers will only be charged an over-the-limit fee if going over the limit is as a result of one of their charges as opposed to a fees imposed by the credit card company. Also, the new bill proposes that over-the-limit fees can also be imposes once per billing cycle.