Bureau extends comment period on credit card late fees to Aug. 1

Anyone wishing to comment on the federal consumer financial protection agency’s advance notice of proposed rulemaking (ANPR) on credit-card late fees has an additional 10 days from the original comment deadline, according to a notice in Monday’s Federal Register.

The ANPR, issued by the Consumer Financial Protection Bureau (CFPB) in June, was originally out for comment until July 22. The CFPB said it received requests from several card issuer trade groups for an extension giving more time for card issuers more time to gather, validate, and analyze the requested information.

The new comment deadline is Aug. 1. “This extension will allow card issuers, consumer groups, and the public more time to pull together the requested information for submission,” the notice states.

The ANPR seeks information about credit card late fees and late payments and whether the fees are “reasonable and proportional.” It also seeks information about credit card issuers’ revenue and expenses, the “potential deterrent effect” of late fees, and the role the fees play in credit card companies’ profitability.

The agency noted that the proposal focuses on the Federal Reserve’s 2010 late fee immunity provision. The CFPB said it is asking for information about the provision that allows credit card companies to escape enforcement scrutiny. The bureau seeks to review the Fed’s immunity provision and determine whether adjustments are needed to address late fees, it noted, which are charged in addition to interest when a cardholder does not make the minimum payment by the due date.

Reg lookup: Credit Card Late Fees and Late Payments