CFPB to Revisit Credit Card Late Fees; Unlikely to be Implemented

Research evidence excerpt

CFPB to Revisit Credit Card Late Fees; Unlikely to be Implemented

USA | Consumer Finance EquityJulyResearch8, 2026

CFPB to Revisit Credit Card Late Fees; Unlikely

to be Implemented

The CFPB submitted a RFI for credit card late fee info. The bureau has indicated

plans to re-explore the late-fee matter. Renewed CFPB interest in the matter

could be: (i) a response to consumer affordability concerns (such as Trump's

proposed 10% rate cap), (ii) to explore actions less susceptible to criticism from

the banking industry, or (iii) to simply update records. Despite the noise, we see

implementation having little likelihood given legal challenges.

CFPB Update - In July 2025, legislation reduced the CFPB's funding cap by ~50% leading to

decreased supervision, investigations, rulemaking, and enforcement. In recent months, many states

have issued letters in support of the CFPB, citing reduced support for consumers since funding

was cut.

Background on the late fee matter - In 2022 the CFPB issued a notice seeking information about

late fees, issuer costs, consumer payment behavior, and Regulation Z. In 2024, Regulation Z was

amended to reduce late fees charged to $8, eliminate annual inflation adjustments to charges,

and limit late fees to a maximum of 25% of required minimum payments; with the amendment

estimated to save consumers ~$10B annually.

2024 Final Ruling - the late fee regulatory proposal was vacated - Upon legal challenge from

banking industry trade associations stating the CFPB had exceeded its authority and imposed an

unlawful price control, the rule was prevented from taking effect and was ultimately vacated as part

of a settlement.

Developments to Monitor - Most importantly, we will monitor whether the CFPB is planning to