Tag:penalty fees

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The CFPB Proposes New Credit Card Late Fee Limits

The CFPB Proposes New Credit Card Late Fee Limits

By John ReVeal

On February 1, 2023, the CFPB proposed new rules to reduce the late fees that credit card issuers may charge to consumers (the “Proposed Rules”).  The CFPB refers to current late fees as “over the top” and “exorbitant.”  The CFPB indicates that it believes it has the authority to limit late fees under the CARD Act of 2009, which amended the Truth in Lending Act to require that late fees and other penalty fees be “reasonable and proportional to” the consumer’s violation of the cardholder agreement.     

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