The news: The Consumer Financial Protection Bureau (CFPB) proposed lowering the amount credit card issuers can charge for late payments—a rule change it said could help save consumers $9 billion a year, per a press release.
Digging deeper: The CFPB wants to change the immunity provision in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), which requires fees to be "reasonable and proportional" to the costs issuers incur for handling late payments. Issuers can currently charge up to $30 for an initial late payment and $41 for subsequent missed payments.
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