Maximum fee rises to $38 for repeat late fees
Federal regulator imposes $1 increase to fix a miscalculation
Maximum penalties for a credit card late fee are going up immediately by $1 for repeat offenders, the U.S. Consumer Financial Protection Bureau announced Friday. The agency said it made a "miscalculation" in an inflation adjustment in 2015, when it dropped the maximum from $38 to $37.
The maximum is going back up to $38, according to the notice.
For first-time offenders, the maximum initial late fee is staying at $27. But for you recidivists, subsequent late fees on the account can be as high as $38, up from the previous limit of $37.
The limits, set by regulations under the Credit CARD Act of 2009, are adjusted annually for inflation. The rise in the ceiling for subsequent late fees corrects a miscalculation in last year's adjustment, the agency said. It will take effect once the update is published in the Federal Register, which is expected shortly.
The agency also kept the $1 threshold for disclosure of minimum interest charges. A card issuer can impose a minimum interest charge of up to $1 without disclosing it.
See earlier story: Maximum credit card late fee falls $1 for 2016, to $37
- Rewards, credit availability could take a hit as credit card banks' profits fall – Profits at U.S. credit card banks fell due to higher delinquencies and lower net noninterest income in 2017, according to a Federal Reserve report ...
- 6 ways you may be violating your card's terms of service – Engaging in one or a number of any of these activities can result in your account being flagged ... or even canceled ...
- How to avoid timeshare scams: A guide – The Federal Trade Commission named timeshare scams one of the top frauds of 2017, making it one of the largest threats to travel security in the U.S. Our guide details what is a timeshare scam and how to avoid them ...