Credit card users paid $130 billion in fees, interest in 2022, federal watchdog says

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Americans paid $130 billion in credit card interest and fees in 2022, according to a new report. Here are three strategies to help limit those charges.

Americans paid $130 billion in interest and fees in 2022, according to a new report by the Consumer Financial Protection Bureau."As big as these 2022 numbers are, I don't think anybody should be surprised if the 2023 numbers ended up being bigger," said Matt Schulz, chief credit analyst at LendingTree.

Some credit card companies charge as much as $41 for a missed payment. The goal is to reduce late payment fees to $8, ban late-fee amounts that go over 25% of the cardholder's required payment and end the automatic annual inflation adjustment, the CFPB said in a February Proposed changes are meant to fill gaps in the Credit Card Accountability Responsibility and Disclosure Act of 2009, or CARD Act. The law imposed guardrails on credit card companies such as price controls on penalty fees and specific conditions in which they can be charged. However, there is no restriction on how much APR a company can charge nor language on late fees.

"Autopay makes a lot of things easier, but it doesn't absolve people of the responsibility for still keeping an eye on things," added Schulz.

 

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Credit card users paid $130 billion in fees, interest in 2022, federal watchdog saysAmericans paid $130 billion in credit card interest and fees in 2022, according to a new report. Here are three strategies to help limit those charges.
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