CFPB Sets Comment Deadline on Proposed Changes to Credit Card Late Fee Regs
Comments on a CFPB proposal to amend Regulation Z, which implements the Truth in Lending Act ("TILA"), are due by May 3, 2023. The proposal requires credit card companies to uphold their obligations to charge fees that are "reasonable and proportional" on late payments. The comment deadline was published in the Federal Register.
As previously covered, the CFPB requested feedback on whether the proposed rule should:
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prohibit late fees when the customer makes the required payment within 15 days of the due date;
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require card issuers to (i) offer automatic payment options, (ii) notify customers of upcoming payment due dates or (iii) provide both options, in order to make use of the immunity provision; and
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eliminate the safe harbor provisions for certain fees.