What's happening
This bill limits credit card late fees in New York to 1.5% of the unpaid balance or $15, whichever is less.
Why it matters
Direct financial relief for consumers. By capping late fees at either 1.5% of the unpaid balance or $15 (whichever is less), the bill could significantly reduce the cost burden for New Yorkers who occasionally miss credit card payments, helping those already struggling with debt avoid accumulating further penalties.
Limits on punitive practices. The measure constrains credit card companies from imposing disproportionately high late fees, which are often criticized as predatory. This could set a precedent for regulating other types of consumer fees and charges in the state.
Potential for broader industry impact. Banks and credit card issuers may need to adjust their policies and fee structures in New York, possibly influencing their practices in other states or sparking similar legislative efforts elsewhere.
Encouragement of responsible lending and borrowing. By restricting excessive penalties, the bill may foster a fairer relationship between financial institutions and consumers, potentially encouraging more transparent and responsible credit practices overall.
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Who cares
Credit card holders who pay late
The bill would cap late-payment charges at 1.5 percent of the unpaid bill balance, including interest, or $15, whichever is less.
Credit card companies
They would have to keep late-payment charges within the new cap starting 90 days after the bill becomes law.
Cardholders carrying unpaid interest
Interest would count toward the balance used to calculate the percentage-based cap on their late-payment charges.
Headline styles
Cap Credit Card Late Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5454
2017-2018 Regular Sessions
IN ASSEMBLY
February 9, 2017
Introduced by M. of A. WEPRIN, SKOUFIS -- Multi-Sponsored by -- M. of A. PERRY -- read once and referred to the Committee on Consumer Affairs and Protection
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 one and one-half percent of the unpaid balance of any bill, including any interest thereon, or fifteen 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.
LBD09521-01-7
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.