Posted 3/6/2024, 3:01:23 AM
CFPB Caps Credit Card Late Fees at $8, Saving Families $10 Billion Yearly
- CFPB finalized a rule cutting typical credit card late fees from $32 to $8, saving families an estimated $10 billion per year collectively
- New rule closes a loophole allowing major card issuers to charge growing late fees, capping them at $8
- Industry groups oppose the rule, arguing it could force issuers to raise interest rates and tighten credit standards
- Rule applies to issuers with over 1 million open accounts, targeting "a handful of large banks" charging $14 billion in late fees yearly
- Effort highlighted alongside other administration actions ahead of State of the Union to save Americans over $20 billion on "junk fees" yearly