The CFPB announced that it is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees.
In an Advance Notice of Proposed Rulemaking (ANPR), the CFPB asks for information on the Federal Reserve Board of Governors’ 2010 safe harbor provision for excessive late fees that allows credit card companies to escape enforcement scrutiny. The CFPB is seeking data about credit card late fees and late payments, assessing whether those fees are “reasonable and proportional.” The Bureau is also seeking data about card issuers’ revenue and expenses, the potential deterrent effect of late fees, and the role late fees play in credit card companies’ profitability.
The ANPR includes these areas of inquiry:
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