With, the financial overhaul implemented by the Federal Reserve on June 14, credit card companies will now have less power over fees charged to retailers on credit card transactions. Taking effect on August, 22nd 2010, the board’s amendments on its Regulation Z to implement certain provisions of last year’s credit card legislation signed by President Obama, this most recent action affects mostly penalty fees (such as late payment fees and over-limit fees) and interest rates among other issues. Sounds like consumers are the big winners this time. The new regulations mark an important milestone in the Federal Reserve’s efforts to ensure that consumers who rely on credit cards are treated fairly.

Indeed, as here are among the long list of inclusions in the amendment which represents the third stage of the implementation of 2009’s Credit Card Accountability, Responsibility and Disclosure Act:

Credit card companies will not be able to charge late fees of more than $25 unless one of your last six payments was late. In addition, your credit issuer cannot charge a late payment fee that is greater than your minimum payment. So, if your minimum payment is $20, your late payment fee can’t be more than that amount. Similarly, if you exceed your credit limit by $5, you can’t be charged an over-the-limit fee of more than $5.

Credit card companies will no longer be allowed to charge inactivity or dormant fees to those keeping accounts open for credit reasons unless the account’s been inactive for 12 months. They could also not, in any circumstance, charge a cardholder more than one fee for a single violation in the credit agreement. For example, you cannot be charged multiple fees for a single late payment or a single bounced check.

Under Credit CARD Act’s new opt-in policy, a cardholder must request that their credit card issuer allow certain charges beyond their usual credit card limits. On top of that, if your credit card issuer increases your APR, they must re-evaluate that rate increase every six months. If the added rates are not justified, they must reduce your rate within 45 days after completing the evaluation.

The new rules surely help protect credit card holders from unfair credit card practices, and hopefully, put an end to issuers’ nasty habit of chipping away at consumers’ hard-earned money with tons of charges.

Learn more of the New Credit Card Regulations at the Federal Reserve’s Website. Til next post!