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  • Frank Tian

💳 CFPB on Card Late Fee

Updated: Dec 21, 2022

CFPB published a comprehensive report on credit card late fees on March 29, 2022.


  • In 2020, a total of $12 billion in late fees were charged.

  • This is about 10% of total credit card interest and fees.


  • The fees decreased since the start of the pandemic,

  • With both government assistance and lenders’ forbearance programs.

  • Since April 2021, they are on the way back to 2019 levels.


  • The average late fee is $31 in 2019.

  • The first late fee is $26-27 vs. the repeated late fee of $34-35.


  • The median value of the max late fee in a credit agreement is $21-25.

  • Large issuers have the max late fees higher at $36-$40.


The Background:


As the financial cushion built during the pandemic begins to dwindle,

The financial cost is back to the attention of regulators.


In January, CFPB launched an initiative targeting the so-called junk fees.

By mid-March, it had already received over 25,000 comments.

The deadline to accept comments has now been extended to April 11.





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