Winning Back-Office Strategies to Boost Your Business Agility
VIEWpoint Issue 1 | 2023
2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
Valuations Can Help Business Owners Plan for the Future
SBA Lenders Beware of BSA
IRS Delays New Reporting Rule for Online Payment Processors
The proposed rule would reduce credit card late fees to $8, from the current safe harbor of up to $41. This amount would no longer adjust for inflation each year. If a financial institution chooses to charge more than $8, they will have to prove the higher fee is necessary to cover costs. In addition, late fee amounts could not exceed 25% of the required payment. Currently, late fee amounts must not exceed 100%.
If passed, financial institutions would be prohibited from imposing late fees on consumers making the required payment within 15 calendar days following the due date. The CFPB is considering imposing lower limits to other types of credit card fees, such as over-the-limit fees and returned-payment fees. The proposal could also potentially set, as a condition of using the safe harbor for late fees, that card issuers be required to offer automatic payment options (such as for the minimum payment amount), or to provide notification of the payment due date within a certain number of days prior to the due date, or both.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).