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CFPB Proposal Targets Limiting Credit Card Late Fees

February 8, 2023

Via: JD Supra

The Consumer Financial Protection Bureau (CFPB) recently issued a notice of proposed rulemaking to amend Regulation Z (the Proposal), which implements the Truth in Lending Act (TILA), to better ensure that late fees charged on credit card accounts are “reasonable and proportional” to late payments as required under the Credit Card Accountability and Disclosure Act of 2009 (Card Act).

The Proposal would adjust the safe harbor dollar amount for late fees to $8 for any missed payment (issuers are currently able to charge late fees up to $41) as well as end the automatic annual inflation adjustment for the immunity provision amount (adjustments would be made based on market conditions going forward).

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