Published: May 2023

Comment submitted in support of CFPB’s proposed rule that would cap credit card late fees at $8

Consumer Action and allies submitted comments in support of a proposed CFPB rule that would cap credit card late fees at $8, unless the card issuer can justify a higher amount.

Consumer Action and allies submitted comments in support of the Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking on Credit Card Late Fees and Late Payments. Under the rule, which imposes an $8 cap on credit card late fees, consumers will save billions of dollars each year. The CFPB provided ample evidence that this amount is fair, reasonable, and proportional to the costs incurred by issuers for late payments. Significantly higher limits serve as a profit center for card issuers, which creates an incentive for issuers to engage in consumer-unfriendly practices to trigger the fee. Under the rule, issuers can charge more if they can justify the amount by demonstrating the true costs of dealing with late payments. The letter also conveyed the signers’ support of a 15-day courtesy period before a late payment fee could be assessed.

Lead Organization

National Consumer Law Center

More Information

Click here to read the coalition letter. 

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