The CFPB has added $1 to the amount that first-time offenders can be charged for a late credit card payment, raising it to $26
The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.
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 in inflation.
Earlier story:Feds cap credit card late fees at $25