CFPB Requests Information on Credit Card Late Fees and Payments
The CFPB requested information from credit card issuers, consumer groups and the public regarding credit card late fees and card issuers' revenue and expenses. An advance notice of proposed rulemaking was published in the Federal Register with a comment deadline set for July 22, 2022.
The CFPB specified that it is seeking input on certain provisions related to credit card late fees pursuant to the Credit Card Accountability Responsibility and Disclosure Act of 2009 and Regulation Z ("Truth in Lending Act"). The CFPB prompts responses to specific questions on:
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factors used by card issuers to set late fee amounts;
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card issuers' costs and losses associated with late payments;
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the deterrent effects of late fees;
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cardholders' late payment behavior;
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methods that card issuers use to facilitate or encourage timely payments, including auto pay and notifications;
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card issuers' use of the late fee safe harbor provisions in Regulation Z; and
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card issuers' revenue and expenses related to their domestic consumer credit card operations.