Credit Card Fees & Penalties Associated With Late Payments

Credit Card Fees & Penalties Associated With Late Payments

The Credit CARD Act requires credit card companies to provide 21 days between the time they mail a bill and when they charge a late fee. It also puts reasonable limits on late fees and interest rate penalties.

  • The number of households who report paying late fees on their credit cards has declined dramatically: in our 2008 survey, half of households reported accruing late fees—in 2012, it was just 28 percent.
  • Those who made late payments were also significantly less likely to see their interest rate increase as a result: 24 percent fewer households reported interest rates increasing as a result of a late payment (from 53 percent of late- paying households in 2008 to 29 percent in 2012.)