Congress Proposes $8 Limit on Credit Card Late Fees for Large Banks
Small business owners who hold credit cards from large issuers would save money on late fees if they occasionally miss a payment. However, the bill only applies to large credit card issuers with 1 million or more open accounts, so small business cards from smaller banks wouldn't be affected. Some analysts worry that banks could offset lost late-fee revenue by raising interest rates or cutting rewards programs, which could affect small business cardholders.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
Democratic Sens. John Fetterman (Pa.), Cory Booker (N.J.) and Tammy Baldwin (Wis.) introduced the Credit Card Fairness Act on Thursday. The bill aims to codify a 2024 CFPB rule that reduced the typical late fee from $32 to $8 for banks with over 1 million accounts.
Sens. John Fetterman, Cory Booker, and Tammy Baldwin introduced the Credit Card Fairness Act to lower the late fee safe harbor to $8. The bill seeks to provide a statutory basis for a cap previously struck down in court and directs future challenges to the D.C. Circuit Court.
New legislation aims to cap credit card late fees at $8, promoting affordability. The Credit Card Fairness Act would codify the cap in law, which supporters say will save over $200 a year on average for the more than 45 million people who are charged late fees.
Document Type
Congressional Bill
Official Title
Credit Card Fairness Act
Analysis generated by AI. Always verify with official sources.