S. 3660: Credit Card Fairness Act
The Credit Card Fairness Act aims to amend the existing Truth in Lending Act in order to limit excessive late fees charged by credit card issuers. The key provisions include:
Purpose
The bill affirms that the Consumer Financial Protection Bureau (CFPB) has the authority to regulate credit card late fees. It seeks to ensure that any late fees imposed by credit card issuers are reasonable and proportional to the costs incurred by these issuers due to late payments.
Late Fee Cap
The legislation introduces a cap on late fees for large credit card issuers, specifically:
- The maximum late fee that can be charged by a large credit card issuer is set at $8.
- Additionally, any late fee must not exceed the actual costs incurred by the issuer due to missed payments, meaning fees cannot be excessive and should not contribute to profits.
Adjustments to the Cap
The CFPB has the discretion to adjust the late fee cap based on changes in the Consumer Price Index, allowing for periodic reviews aligned with inflation but maintaining the base fee at $8 unless otherwise justified.
Legal Proceedings & Rulemaking
Any legal challenges regarding the provisions of this bill or the decisions made by the CFPB must be filed in the United States District Court for the District of Columbia. Furthermore, the bill requires the CFPB to publish the research that informs its rules before entering the public comment period, promoting transparency in its decision-making process.
Definitions
The bill defines a large credit card issuer as one with 1,000,000 or more open accounts, establishing a baseline for which issuers the cap will apply to.
Conclusion on Objectives
Overall, the Credit Card Fairness Act is designed to provide consumer protection by ensuring that late fees are fair and commensurate with the costs faced by credit card issuers, thereby potentially reducing the financial burden on consumers who face late payment circumstances.
Relevant Companies
- V — Visa Inc. is a large credit card issuer that may need to adjust its late fee structures in response to this bill.
- MA — Mastercard Incorporated would similarly be affected, needing to comply with the new regulations on late fees.
- AXP — American Express Company is another issuer likely to be impacted, as it too has significant credit card operations.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
6 bill sponsors
Actions
2 actions
| Date | Action |
|---|---|
| Jan. 15, 2026 | Introduced in Senate |
| Jan. 15, 2026 | Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
Corporate Lobbying
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