Federal Reserve enforces limits on credit card... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Federal Reserve enforces limits on credit card application fees

Federal Reserve enforces limits on credit card application fees

Federal Reserve enforces limits on credit card application fees

PREMIER Bankcard, as a financial institution has been in compliance with the rules, and regulations implemented by the Federal Government in regard to credit cards. Miles Beacom, the CEO of this financial institution says that the price controls imposed by the regulations affects the way companies can price for risk. This institution that is well known for providing high risk individuals with credit cards ensures all the applicants are fully aware of the fees and terms and conditions associated with the cards before applying for one. The reason for the growing concern is the new set of rules being put in place to regulate the issuing of credit cards will further limit an individual`s ability to access credit or to restore their damaged credit.


The Federal Reserve regulators have recently introduced changes in how banks place fees on access to subprime credit cards and other services. These new rules will now assist in regulating fee limits for such bank transactions.


The Federal Reserve previously enforced Credit CARD Act provisions, of computing for service fees in relation with the amount of the credit card account’s initial limit available. This means that the service fees must not exceed 25 percent of the account’s initial credit card limit.


For credit cards at PREMIER Bankcard (service provider for First PREMIER Bank), service fees, are based on the risk being taken by the bank while offering the client a credit card. A large proportion of the charges associated with the credit card are also used to maintain significant reserves to cover cardholder default. While the fees may be slightly lower for people with good credit scores, those with not so good scores might have to pay a higher fee.


The Federal Reserve also said that it is serious in its efforts to observe provisions of the new Credit CARD Act. Common bank practices of charging fees at 25 percent of one’s initial available credit limit, for a period of one year will also be prohibited.


Miles Beacom, while assuring the compliance for Federal Regulations, also mentioned that while rules and regulations continue to shift and change, his organization remains committed to helping individuals receive a second chance when it comes to moving forward with their finances.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x ... Continue reading
Masterpass Comes to BJ’s Wholesale Club

Posted: April 25, 2018

Have you been wondering when you would be able to use Masterpass, to check out at BJ's Wholesale Club? If you have, you don't have to wonder any more. The pair recently inked a deal, bringing Masterpass, MasterCard's digital wallet, to ... Continue reading
A New Unified Marriott and SPG Rewards Program is Coming

Posted: April 24, 2018

When Marriott acquired SPG, it was unclear what would happen with their rewards programs. But now the cat is out of the bag. SPG, Marriott Rewards and Ritz-Carlton Rewards will all become one loyalty program this August. At that point, all ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!