Credit card late fees could rise in 2014
Federal agency boosts penalty for occasional late payment to $26
Inflation may be almost whipped, but there was enough of it
last year to cause a $1 increase in the late fees that credit card issuers may charge to first-time offenders.
Starting Jan. 1, 2014, card issuers can charge $26 the first
time you make a late payment, up from $25 in 2013, the U.S. Consumer Financial
Protection Bureau determined. For each
subsequent violation within six months, the allowed late fee is $37, up from
$35. Late fees also cannot exceed the minimum payment due, under the Credit CARD Act of 2009.
However, if your card agreement specifies a minimum late fee
that is set at the old threshold, that
amount will remain in effect until you
receive an updated agreement.
Card issuers must also disclose if they charge any minimum
interest charge of $1 or more per billing cycle. That disclosure threshold
remains unchanged for 2014, the CFPB determined.
The Credit CARD Act of 2009 gives the CFPB the authority to annually update the allowed amounts of various credit card charges, based on changes
Earlier story: Feds cap credit card late fees at $25
Published: January 6, 2014