Posted 3/5/2024, 8:07:57 PM
CFPB Proposes $8 Cap on Credit Card Late Fees, Drawing Industry Backlash
- The CFPB proposed capping credit card late fees at $8 to save consumers $10 billion in fees
- The credit card industry argues this could lead to unintended consequences like more late payments, lower credit scores, reduced credit lines, and higher interest rates
- The banking industry says the $8 cap is below banks' actual costs for managing late fees
- The Consumer Bankers Association said the rule is about "consumer redistribution, not consumer protection"
- The U.S. Chamber of Commerce is suing over the proposal, arguing it will limit access to affordable credit