Credit Card Fairness Act

S 3660, the Credit Card Fairness Act, limits late fees charged by large credit card issuers (those with 1 million+ open accounts) to a maximum of $8 per late payment. The bill requires that late fees be proportional to the actual costs incurred by issuers for late payments, not set arbitrarily. It allows the Consumer Financial Protection Bureau (CFPB) to adjust the $8 cap annually based on inflation (using the Consumer Price Index), but the fee must never exceed the issuer's documented costs. This bill directly affects major credit card companies and aims to prevent excessive late fees, codifying the CFPB's existing rule into law.