Would a Credit Card Bill of Rights Ultimately Help or Harm Consumers?

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  “Act Curbs Late-Fee “Gotcha” Tricks”

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Act Curbs Late-Fee “Gotcha” Tricks

Consumer Federation of America

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Under the Act, consumers who pay their payments on time would not be assessed late fees (that can be as high as $40) because of credit card companies’ arbitrary processing deadlines and delays. Recently, issuers have slashed the time period in which consumers can make an on-time payment. The Act would require that the credit card bill be mailed at least 25 days before the bill is due (currently it’s only 14 days).  The Act would prevent issuers from charging a late fee when the consumer can demonstrate they have made payment a week before the due date.  In addition, issuers would no longer be allowed to set odd hours for the payment to be received on the due date – a deceptive practice that often results in late fees. The Act would set a single uniform time of no earlier than 5 p.m. Eastern on the due date that payments must be received by.

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"Help" CFA

• Act Would End Bait and Switch Contract Clauses
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• Cardholders Would Not Pay Interest on Debt Already Paid Off
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• Issuers Would Have to Fairly Apply Payments to Card Balances
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• Prohibits Retroactive Application of Rate Hikes for Consumers
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• Act Curbs Late-Fee “Gotcha” Tricks
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"Harm" AFSA

• Policymakers Need to Look at the Big Picture
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• The Right Numbers Tell a Different Story
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• Price Controls are Not the Way to Go
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• Risked-Based Pricing Benefits the Customer
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"Harm" CEI

• The Market Provides Abundant Choices
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• The Poor—and Those With Bad Credit—Would Suffer Most
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• Deregulation Provides the Best Path to a Better Consumer Experience
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Do We Need Credit Card Rights?

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