NEW YORK (CNNMoney) -- Bank of America customers who make late payments on their credit cards may soon see their interest rates jump.
Beginning June 25, the nation's largest credit card issuer will introduce a penalty interest rate of up to 29.99% on future balances for credit card customers who fail to make timely payments.
Bank of America hasn't charged a penalty rate since the Card Act was introduced in 2009 -- which limited issuers from raising rates on existing balances.
But issuers weren't prevented from raising rates on new balances. They just have to notify customers at least 45 days before raising the rate, as Bank of America said it will do.
In addition, the Federal Reserve is considering a cap on the fees banks can charge retailers when consumers swipe their debit cards. Speculation about the new "swipe fee" regulation has led banks to make many changes to terms and conditions in recent months.
Bank of America is also testing a $59 annual fee for its riskiest customers. Other issuers have eliminated debit rewards programs, tested $5 ATM fees, introduced monthly fees on checking accounts and threatened to put a spending limit on debit cards.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.87%||3.83%|
|15 yr fixed||3.17%||3.18%|
|30 yr refi||3.90%||3.85%|
|15 yr refi||3.16%||3.17%|
Today's featured rates:
More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More
Britain has lost 65,000 retail jobs since it voted to leave the European Union, a decline fueled by increased online competition and a Brexit-induced wage squeeze. More
The future of how the internet is regulated may be decided this week. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Households pay an average of $904 a year in interest alone because of credit card debt, according to an analysis by NerdWallet. More