Provides that 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.
Summary
This bill would cap credit card late fees in New York State. It adds a new section to the General Business Law providing that any late charge assessed by a credit card company may not exceed 5% of the unpaid balance of the bill, including any interest, or $20, whichever is less. The measure is straightforward and narrowly focused on consumer credit card billing practices.
If enacted, the bill would create a new state-law limit on the amount card issuers can charge when a payment is late, replacing any higher late-fee practices that exceed the statutory cap. The law would apply to credit card companies and their assessment of late-payment charges, and it would take effect 90 days after becoming law.
Impact
The bill would amend the New York General Business Law by adding section 518-b, establishing a specific ceiling on credit card late charges. It would affect credit card issuers, cardholders, and billing practices in New York by limiting late fees to the lesser of 5% of the unpaid balance or $20, including interest on the bill. The bill does not alter underlying debt obligations or interest rates, but it would constrain one category of consumer finance fees and likely require issuers to adjust billing systems and disclosures to comply.
Sentiment
No committee transcript or vote record is provided, so there is no documented debate or recorded sentiment in the available materials. Based on the bill text alone, the measure appears consumer-protection oriented and designed to reduce penalty fees for late credit card payments. The absence of opposition or support statements means the overall sentiment cannot be assessed beyond the bill’s apparent pro-consumer purpose.
Contention
The main potential point of contention is the balance between consumer protection and credit card company pricing flexibility. Supporters would likely favor the cap as a limit on excessive late fees and a way to protect borrowers from disproportionate penalties, while opponents might argue that fee caps could reduce issuer revenue, affect risk pricing, or limit deterrence for late payments. Because there are no transcripts or votes included, no specific lawmakers, stakeholders, or objections are identified in the record provided.
Same As
Provides that 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.
Provides that 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.
Provides that 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 or fifteen dollars.
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