What's happening
This bill limits credit card late fees in New York to no more than 5% of the unpaid balance or $20, whichever is less.
Why it matters
Reduces the financial burden on consumers. by capping late fees, making it less costly for those who occasionally miss credit card payments and helping prevent small debts from ballooning due to excessive penalties.
Promotes greater transparency and fairness. in credit card practices, ensuring that late fees are more closely aligned with actual costs incurred by lenders rather than serving as a source of excess profit.
Could influence credit card company behavior. , potentially encouraging them to place more emphasis on customer communication and proactive payment reminders, rather than relying on punitive fees as a revenue stream.
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Who cares
Headline styles
Cap Credit Card Late Fees
Plain English, a few words. Used as the page title.
Sponsors
4 Multi-sponsors
History
- Referred to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Credit Card Late Fees
In Senate Committee · Consumer Protection · Sponsor Kevin S. Parker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
156
2017-2018 Regular Sessions
IN ASSEMBLY (Prefiled)
January 4, 2017
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. CURRAN, ENGLEBRIGHT, HOOPER, MAGEE -- read once and referred to the Committee on Banks
AN ACT to amend the general business law, in relation to credit card late charges
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 518-b to read as follows:
§ 518-b. Credit card late charges. Any charges assessed by a credit card company for late payment shall not exceed five percent of the unpaid balance of any bill, including any interest thereon, or twenty dollars, whichever amount is less.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01494-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.