CFPB’s credit card late fee rule change still slated for May 2024 despite staunch opposition

If you can’t keep track of the efforts to kill the Consumer Financial Protection Bureau’s final rule limiting many credit card late fees to $8, don’t feel bad.

Opponents of the proposal are trying to shoot it down everywhere. So far, they are failing. The rule still is slated to go into effect next month.

It may seem like years ago, but it was only last month that the agency that Republicans and credit union trade groups love to hate issued a final rule on credit card late fees. The agency lumped those late fees into the category of “junk fees,” a Biden Administration term that includes everything from fees tacked onto the price of a ticket to go to a baseball game to fees consumers are charged if they overdraw their bank accounts.

The rule would lower most credit card late fees to $8, specifically at card issuers with more than one million open accounts. Card issuers can charge more if they can demonstrate that it costs more than $8 to collect the money they are owed.


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