Payment Card News

Card Fees

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Fees for making a late payment have leveled-off over the past two years increasing by 2% per annum and remained flat during June compared to the prior month. Over the past ten years late fees have soared by 137% from $13.21 to $31.37 following a 1996 U.S. Supreme Court ruling. According to CardData, the most common late payment fee in June was $35. On June 3, 1996 the U.S. Supreme Court ruled that card fees should be treated the same as interest rates when it comes to the preemption of state laws. Previously the Supreme Court ruled commercial banks may charge interest rates on credit cards subject to the limitations imposed by the bank’s home state or issuing state, not the cardholder’s state of residence. The ruling gave the same protection to fees associated with a bank credit card program. (CardTrak 1/28/05)

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|_2. June Late Fees |
|_. 2002: | $27.44 |
|_. 2003: | $28.33 |
|_. 2004: | $30.01 |
|_. 2005: | $30.71 |
|_. 2006: | $31.37 |
|_2. Source: CardData (“www.carddata.com”:http://www.carddata.com) |

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