By backing off a plan to limit large up-front fees banks can charge on credit cards, the Consumer Financial Protection Bureau feels it has protected cardholders from other increased costs, the Associated Press reported April 12.
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The bureau was considering a rule in which a bank’s upfront fees would have counted toward a cap that currently does not allow a bank to charge fees more than 25% of a person’s credit limit during the first year in which an account exists, the report noted.
The agency’s new rule allows banks to charge upfront fees of any amount, with the 25% cap applying to fees after the card was issued.
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