CFPB’s Push to Crack Down on Credit Card Late Fees: Explained

The Consumer Financial Protection Bureau wants to dramatically slash the $12 billion in late fees the credit card industry collects each year—but it faces a fight with the industry.

The CFPB proposed essentially capping late fees credit cards can charge at $8, among other changes. Currently banks like Bank of America Corp., JPMorgan Chase & Co., and Capital One Financial Corp., and other card issuers, can charge $30 for a first missed payment and $41 if a consumer misses another payment within the subsequent six months.

But opposition from banks and other credit card issuers, and a US Supreme ...