The Consumer Financial Protection Bureau is proposing new rules limiting credit card late fees to $8 per missed payment. The CFPB’s proposed rule would also limit late fees to 25% of the required minimum payment.
CFPB officials say that $8 per missed payment far exceeds the collection costs associated with late payments. The CFPB says that late fees can currently reach $41 per missed payment. Rules put in place over a decade ago capped first-time missed payments to $25, but that was allowed to go up based on inflation. The new rule would not increase the allowable late fee based on inflation.
“Over a decade ago, Congress banned excessive credit card late fees, but companies have exploited a regulatory loophole that has allowed them to escape scrutiny for charging an otherwise illegal junk fee,” said CFPB Director Rohit Chopra. “Today’s proposed rule seeks to save families billions of dollars and ensure the credit card market is fair and competitive.”
What about a $8 tax cap for those of us who are active members of society. Why am I paying dues for the ones who are not.
Then someone’s gonna cry about this .
Recent economic report presented at SANDAG