Your Credit Card Late Fees Could be Slashed, Thanks to CFPB Proposals

Federal bureau moves to rein in credit card late fees saving customers as much as $9 billion a year.

A woman holding several credit cards
(Image credit: Getty Images)

At the beginning of February 2022, the Consumer Financial Protection Bureau (CFPB) proposed rules to cap credit card late fees. In 2020, credit card late fees cost Americans almost $12 billion, and this number could potentially rise considering the expected hike in serious credit card delinquencies this year. Paying your credit card bill late not only comes with a hefty late fee but usually brings other negative consequences, like lowering your credit score or increasing your APR

“Over a decade ago, Congress banned excessive credit card late fees, but companies have exploited a regulatory loophole that has allowed them to escape scrutiny for charging an otherwise illegal junk fee,” says CFPB Director Rohit Chopra. With these proposed changes, Chopra hopes to eliminate over the top late fees to “save families billions of dollars and ensure the credit card market is fair and competitive”

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.