By Lisa Gerstner
From Kiplinger’s Personal Finance
Failing to pay your credit card bill on time can result in a hefty fee. The amount varies by card, but under federal rules, issuers can currently charge up to $30 for the first late payment and up to $41 for subsequent late payments within six months.
The maximum fee is subject to an annual adjustment for inflation, which reached 40-year highs in 2022. Americans rack up about $12 billion each year in credit card late fees, according to the Consumer Financial Protection Bureau (CFPB).
Recently, the CFPB proposed capping credit card late fees at $8, estimating that large card issuers generate about five times more in income from late fees than the collection costs they incur for late-payment violations. The CFPB also wants to limit late fees to no more than 25 percent of the minimum payment that the cardholder owes and eliminate the automatic inflation adjustment. The CFPB is gathering public comments on its proposals and has not issued a final rule….