Credit Card Penalty Fees Fell 48 Percent in Four Years: Study

January 28, 2014
American Banker 
credit card news
U.S. credit card users paid $12 billion in penalty fees in 2013 -- roughly half of the $22.9 billion they forked out in 2009 -- according to industry consultant R.K. Hammer. It attributes the 48 percent drop to the Card Act, which limited the ability of issuers to charge the fees starting in 2010.

The findings dovetail with the Consumer Financial Protection Bureau's October 2013 report, which concluded that over-the-limit fees have essentially been abolished and the amount of late fees has shrunk since the Card Act was implemented.

R.K. Hammer, however, noted that card companies are trying to recoup some of their lost fee revenue by adding new charges -- including for receiving paper statements, having inactive accounts, and for making more than an allowed number of customer service calls during a single billing cycle.









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