The late fees imposed on credit card is to be reduced in accordance with the new laws which will be enforced. Companies who issue credit cards are on the hot seat as they are forced to cut down late fees on credit cards. Credit card users will be charged at the rate of 25 dollars in case they pay their dues late.
The existing rate of 39 dollars will be done away with when the new law is enforced. However, it is likely that credit card issuers could make up for the lost revenue with new measures. The loss due to the reduction in the late fee could cost the credit card companies around three billion dollars. These statistics were revealed by the cardhub.com web site which monitors such matters.
In 2008 an estimated 11.4 billion dollars was levied on credit cards users by way of late fee and other penalties. The new law allows imposing heavier fines on credit card users who violate the time frame repeatedly. Credit card holders will have to pay at the rate of 35 dollars under the new laws. This new law named the Credit Card Accountability Responsibility Disclosure of 2009 could ease the burden of the public. There could be a drop of 29 percent income for the credit card companies which could amount to about 8.1 billion dollars.