Consumer Payment Card News

$35 Late Fees

Discover has joined Citibank and Fleet in the trend to boost late payment fees on credit cards beyond the $29 barrier. Late payment fees increased 5.5% last year and have soared 134% since 1994. Effective March 1, Discover will assess of $35 late fee on past due balances over $1,000. For balances under $100, the fee will drop to $15, and for past due balances between $100 and $1,000, the fee will be $25. In August, Citibank boosted late payment fees from $29 to $35 using the same tiered structure announced by Discover. Fleet, CompuCredit, and Direct Merchants have also crossed the $29 late fee level. CompuCredit now charges a $35 late fee and a $35 over-limit fee on its lineup of ‘Aspire VISA’ cards. Direct Merchants Bank charges a $34 late fee on its new ‘Titanium MasterCard’. In 2000, Fleet Credit Card Services began charging a $35 late fee on all its card products including the new ‘Fusion smart VISA’. Advanta was the first card issuer to institute $35 fees for holders of its business card products.

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