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CFPB Issues Final Rule Regarding Credit Card Penalty Fees
Michael Christians • March 6, 2024
On March 5th, the Consumer Financial Protection Bureau (CFPB) issued its long-awaited final rule regarding credit card penalty fees.
The rule, which goes into effect 60 days following its publication in the Federal Register, does the following:
Large Card Issuers
A large card issuer is defined as an issuer with one million or more open credit card accounts. A large card issuer may charge:
- A late fee not to exceed $8
- The following penalty charges for violating the terms or other requirements of a credit card account -
- $32 for the initial violation
- $43 for a subsequent violation of the same type that occurs during the same billing cycle or in one of the next six billing cycles
Small Card Issuers
A small card issuer is defined as an issuer with fewer than one million open credit card accounts. A small card issuer may charge:
- Late fees and other penalty charges for violating the terms or other requirements of a credit card account that do not exceed -
- $32 for the initial violation
- $43 for a subsequent violation of the same type that occurs during the same billing cycle or in one of the next six billing cycles
The $32 and $43 amounts will be adjusted annually for inflation; however, the $8 maximum late fee charge for large card issuers will not change.
You can access a copy of the final rule here.
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Michael Christians Consulting, LLC
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