What's happening
This bill limits credit card late fees in New York to a maximum of 5% of the unpaid balance or $20, whichever is less.
Why it matters
Reduces financial penalties for late payments. , making it less costly for consumers who miss credit card due dates—this could especially help those already struggling with debt avoid spiraling fees.
Limits the power of credit card companies. to impose steep or arbitrary late charges, increasing consumer protections and potentially forcing companies to rely more on responsible lending and risk assessment practices.
Makes late fee rules clearer and more predictable. , so cardholders will know the maximum penalty beforehand, potentially encouraging more proactive consumer financial management.
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Who cares
Headline styles
Limit Credit Card Late Fees
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
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.
Cap Credit Card Late Fees
In Assembly Committee · Banks · Sponsor Kevin Cahill
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2293
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer 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 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.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to credit card late charges
Purpose or general idea of bill
This legislation provides that any charges assessed by a credit card company for late payment will not exceed 5% of the unpaid balance of any bill or twenty dollars, whichever is less.
Summary of specific provisions
This bill adds a new section 518-b to the general business law to carry out the above provision.
Effects of present law which this bill would alter
Existing business law does not provide limits on credit card late charges.
Justification
This legislation is introduced in response to an increasing reliance the bank industry has placed on the use of charges of this nature to supplement revenue. In some cases, late fees can amount to as much as a 350% increase in an overall balance. This practice is predatory in the sense that it further restricts payment options for certain individuals, setting into motion a cycle of continuous debt to the benefit of the industry and the detriment of the customer.
Prior legislative history
2015-2016: A.1572 - Referred to Consumer Affairs and Protection 2013-2014: A.1369 - Referred to Consumer Affairs and Protection 2011-2012: A.1009 Referred to Banks 2009-2010: A.487 Referred to Banks 2007-2008: A.7715 Referred to Banks 2005-2006: A.5639 Referred to Consumer Affairs and Protection 2003-2004: A.205 Referred to Consumer Affairs and Protection 2001-2002: Referred to Consumer Affairs and Protection 2000: Referred to Consumer Affairs and Protection
Fiscal implications
None.
Effective date
This act shall take effect on the 90th day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.