American Banker: CFPB will cut credit card late fees to $8

American Banker, February 1, 2023, American Banker: CFPB will cut credit card late fees to $8

The Consumer Financial Protection Bureau plans to cut credit card late fees to $8, wiping out up to $9 billion a year in fees that have become highly profitable for banks and credit card companies.

CFPB Director Rohit Chopra plans to propose a rule on Wednesday that would slash late fees from the current $30 for the first fee and $41 for each subsequent missed payment, a potential five-fold drop. The proposal would set credit card late fees at reasonable levels and no longer allow late fees to be pegged annually to inflation.