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
Directly reduces the financial burden on consumers. by capping late fees, preventing excessive penalties that can compound financial stress for people who miss payments.
Makes credit card costs more predictable and transparent,. helping consumers better understand and manage the consequences of late payments and avoid spiraling debt from unpredictable or sky-high fees.
Could incentivize more careful lending and billing practices. by credit card companies, since they can no longer rely on high late fees as a revenue source, possibly leading to fairer overall credit practices.
May particularly benefit lower-income and financially vulnerable individuals,. who are more likely to be impacted by late fees, helping them avoid falling deeper into debt due to unavoidable or one-time payment delays.
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Who cares
Headline styles
Cap Credit Card Late Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
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
397
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ENGLE- BRIGHT -- 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.
LBD01992-01-9
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.