How things might changeIf no substantive changes are made to the proposal, here is how late fees would change, relative to current rules.
Today, they may charge you automatically up to $41 ($30 for your first late payment but $41 for subsequent ones).
But since the CFPB hasn’t seen today’s late fees exceed $41, it is unlikely you would see late fees as high as those examples suggest, Shearer noted.
Among them, they assert that the CFPB’s estimates don’t account for the costs associated with uncollected late fees or the forgiveness of late fees by financial institutions.
As a result, the cost of credit will increase, credit availability will drop, and rewards and other credit card features will decline and some may disappear,” the letter stated.
Persons:
Brian Shearer, Rohit Chopra, Shearer, ”, “, ” CFPB’s Shearer
Organizations:
New, New York CNN, Consumer Financial, American Bankers Association, Consumer Bankers Association, National Association of, ABA
Locations:
New York