The newly introduced law concerning credit cards has come into effect now. Federal legislation has placed restrictions on the amount of credit card charges, but at the same time it is important to bear in mind that a few exceptions remain in place.

Special charges or penalty fee incurred by late payments and other ‘contraventions’ now have a cap of $25.

Earlier, credit cards could charge from a range $35 to $39, irrespective of the amount that was due.

Along with that if there has been just one violation, it could not result in over a single fee.

But, it is necessary to keep in mind that there is no total ban imposed over penalty fees on $25. A bank which intends to impose elevated amount of fee must also offer a justification for doing so.

A bank might offer an evaluation regarding late payments that can reach as high as $30.

It is completely dependent upon a respective bank to take up decisions on its own.

One more exception to the $25 cap is that if any customer again indulges in violation just within a term of 6 months, the cap amount will reach $35.