The Consumer Financial Protection Bureau (CFPB) developed a rule that would ban excessive credit card late fees, lowering the typical fee from $32 to $8 - this number represents the cost that credit card companies incur from late payments.
The rule will curb fees that cost American families more than $14 billion a year.The CFPB estimates that American families will save more than $10 billion in late fees annually once the final rule goes into effect by reducing the typical fee from $32 to $8. This will be an average savings of $220 per year for the more than 45 million people who are charged late fees.¹