• Credit lenders are now limited in the fees they charge.money and credit cards image by Gary from Fotolia.com
  
  Truth in lending regulations exist to increase consumer awareness in terms of credit. Fees and charges must be disclosed to the card holder. Credit card companies are also prohibited from changing rates of interest except under very specific circumstances. With the help of truth in lending regulations, consumers are protected from unfair charging and predatory lending practices.
  
  

Finance Charges

• The Truth in Lending Act defines quite clearly what finance charges are. According to the act, finance charges are interest rates, service or carrying charges, loan fees, finders fees, investigation fees, credit report fees, insurance charges for protection and mortgage broker fees. Finance charges cannot include third party fees such as collections or attorney's costs.
  
  

Interest Rate Increases

• Under the Credit Card Accountability, Responsibility and Disclosure Act, credit card companies are no longer allowed to impose retroactive rate increases except in very specific circumstances. Credit card companies are still allowed to advertise low introductory offers to customers and raise the rate once this period has ended. Credit card companies are also allowed to raise rates for customers that are more than 60 days delinquent on their account. However, once the customer shows six months of timely payments, the reduced rate they were given must be reinstated.
  
  

Fee Restrictions

• Fees have been highly restricted under the Credit Card Accountability and Disclosure Act. Consumers must agree to over-the-limit fee restrictions. If they decline the offer, then their charges are declined when the amount would push them over their card limit. Creditors are no longer allowed to charge account holders for making payments over the Internet or via the telephone. Payments received by the due date or the next business day can no longer be given late fees.
  
  

Sub-Prime Cards

• Sub prime cards are a way for consumers with past credit problems to rebuild their credit score. However sub prime cards carry heavier interest rates. Sub prime cards are now also covered under the Truth in Lending Act and The Credit Cards Accountability and Disclosure Act. Sub prime cards will still carry a higher rate of interest. However, non-penalty fees cannot take up more than 25 percent of the total credit limit.