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”

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

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.