On June 22, 2022, the CFPB announced that it is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees. The CFPB has published an Advance Notice of Proposed Rulemaking published where it asks for information on the Federal Reserve Board of Governors’ 2010 immunity provision for excessive late fees that allows credit card companies to escape enforcement scrutiny.
Specifically, the CFPB is seeking data about credit card late fees and late payments to assess whether those fees are “reasonable and proportional.” They are also seeking data about card issuers’ revenue and expenses, the potential deterrent effect of late fees, and the role late fees play in credit card companies’ profitability.
Read the CFPB’s announcement here.
The ANPR for Credit Card Late Fees and Late Payments can be found here.
