Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck (2024)

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Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck? ›

Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

As discussed here, the CFPB's Final Rule reduces the safe harbor amount for late fees charged by major credit card issuers from $30 and $41 to $8. The rule was set to take effect on May 14, 2024.

The bill limits the number of overdraft fees a consumer may be charged each month and year, and provides that such fees must be reasonable. The bill prohibits an overdraft coverage fee if the overdraft results solely from a debit hold amount that exceeds the actual dollar amount of the transaction.

The CFPB announced a final rule that will cap credit card late fees at $8 for the largest credit card issuers, according to a March 5, 2024 release.

Contact your credit card issuer directly to discuss the fee and provide any relevant information or documentation. Credit card companies may waive the fee as a courtesy, especially if you have a history of timely payments.

New RBI rule: Freedom to choose your card network

Starting September 6, 2024, the RBI will prohibit card issuers from signing exclusive contracts with card networks. This means you'll have the freedom to choose your own card network, either at the time of issue or later.

CFPB approves rule to ensure accuracy and accountability in the use of AI and algorithms in home appraisals. Today, the Consumer Financial Protection Bureau approved a new rule to address the current and future applications of complex algorithms and artificial intelligence used to estimate the value of a home.

On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

New government regulations are slashing the late fees charged by many credit card companies. On March 5, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule limiting the penalty for late payment to $8 per incident, down from an industry average of $32.

The CFPB's rule prevents lenders from attempting to collect payments from people's bank accounts in ways that may rack up excessive fees or deviate from what they expect.

How to ask for late payment forgiveness? ›

A goodwill letter is a formal letter sent to a creditor, lender or collection agency to request forgiveness for a late payment or other negative item on your credit report. In the letter, you typically: Explain the circ*mstances that led to the late payment or issue.

But in 2010, the Federal Reserve Board of Governors voted to include a provision in the CARD Act that allowed banks to charge no more than $25 for the first late payment and $35 for subsequent late payments, with both of those figures being adjusted for inflation each year.

Many issuers will waive late fees as a courtesy to customers with good payment records. Call your issuer, explain the situation and ask a customer service representative if they can waive the fee. If you're also subject to a penalty APR, you can ask for its removal as well.

On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.

For any violation of a law, rule, or final order or condition imposed in writing by the CFPB, a civil money penalty of up to $5,000 for each day during which such violation or failure to pay continues.

The CFPB's rule prevents lenders from attempting to collect payments from people's bank accounts in ways that may rack up excessive fees or deviate from what they expect.

Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing.