On November 28th, 2023, Consumer Federation of America and many other consumer advocates submitted comments to the National Economic Council, expressing their strong and enthusiastic support for the CFPB’s proposed rule relating to credit card penalty fees. The organizations also submitted 38,294 signatures collected by Consumer Reports, and stories from consumers about their frustrating experiences with credit card late fees collected by CR and Americans for Financial Reform, to demonstrate additional strong public support for the rule.

The critically important Credit Card Penalty Fees rule will help ensure that the late fees charged on credit card accounts are “reasonable and proportional” to the late payment as required under the Truth in Lending Act (TILA). The proposal would adjust the safe harbor dollar amount for late fees to $8 and eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type; prevent credit card companies from adjusting the safe harbor dollar amount every year for inflation; and provide that late fee amounts must not exceed 25 percent of the required payment.