CFPB PROPOSED RULE SLASHES CREDIT CARD LATE FEE SAFE HARBOR

As part of its ongoing battle against “junk fees” and following its request for comment on credit card late payment fees and the fee safe harbor, the Consumer Financial Protection Bureau (“CFPB”) recently issued a notice of proposed rulemaking to amend the Regulation Z credit card penalty fee safe harbor as it applies to credit card late fees from its current rate of $30 for the first violation and $41 thereafter to the lesser of $8 or 25% of the minimum payment. See our ALERT of June 24, 2022. The proposed changes to Regulation Z penalty fees are limited to late fees at this time; however, the CFPB is seeking comments on whether the proposed amendments should apply to other fees as well. Read More