CFPB-PR-240305-1
Date Released: 
March 5, 2024
Headline:
CFPB-PR-240305-1 – Statement of CFPB Director Rohit Chopra on the Final Rule to Close the Credit Card Late Fee Loophole
Excerpt:
The Consumer Financial Protection Bureau is taking action to rein in junk fees on credit cards, increase competition, and put billions of dollars back in the pockets of American families. We are finalizing a rule that will lower the typical late fees charged by big credit card issuers from an average of $32 down to $8 in most cases. We estimate this change will save families $10 billion every year, an average savings of $220 per year for the more than 45 million people who are charged late fees.
The announcement of this rule comes after an extensive process, consideration of thousands of comments, and a great deal of research into the credit card market. We have learned a lot, and we have real concerns about how the competitive process is working in this market.
Today, the credit card industry hauls in more than $14 billion in late fee revenue each year, which our research shows is more than five times the companies’ associated costs. They charge these fees to consumers even when their payment is only a little bit late or when it’s out of their control. This is on top of extra interest charges, negative credit reporting, and a slew of other consequences.
https://www.consumerfinance.gov/about-us/newsroom/statement-of-cfpb-director-rohit-chopra-on-the-final-rule-to-close-the-credit-card-late-fee-loophole/
[Date Accessed: 3/11/2024]
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