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A3885Assembly2019-2020 Session

Cap Credit Card Late Fees

Official title

“Provides that any charges assessed by a credit card company for late payment shall not exceed 1.5 percent of the unpaid balance of any bill or fifteen dollars”

Sponsor David WeprinAD-24Affects Public Safety & Consumer Affairs
Status
In Assembly Committee
Consumer Affairs And Protection
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Consumer Affairs And Protection

What's happening

This bill limits credit card late fees in New York to the lesser of 1.5% of the unpaid balance or $15.

Why it matters

  1. Significantly lowers potential late fees for New Yorkers. By capping late fees at the lesser of 1.5% of the unpaid balance or $15, the law could reduce the financial burden on consumers who miss a payment, especially for those with larger balances that would otherwise incur much higher penalties.

  2. Helps prevent the accumulation of unmanageable debt. High late fees can quickly add up and trap consumers in cycles of debt. Limiting these fees may help people avoid falling deeper into financial hardship due to one or two missed payments.

  3. Shifts industry practices and transparency. Credit card companies may need to adjust their fee structures, policies, and disclosures to comply with the new cap, potentially making costs and penalties clearer and fairer for consumers.

  4. Could influence nationwide policy debates. As New York is a large and influential state, this move may prompt similar discussions or legislative efforts in other states or at the federal level, increasing pressure for broader consumer protections around credit card fees.

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Who cares

Headline styles

Cap Credit Card Late Fees

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
David Weprin

Assembly Member · Assembly District 24

Chair, Insurance

1 Multi-sponsor

History

  1. Referred to consumer affairs and protection
  2. Referred to consumer affairs and protection

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3885

2019-2020 Regular Sessions

IN ASSEMBLY

January 31, 2019

Introduced by M. of A. WEPRIN -- 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.

LBD08417-01-9

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.