Congress locks in credit card late-fee cap, protecting consumers from $30+ penalties
S. 3660 — Credit Card Fairness Act · Filed by John Fetterman (D-PA) · 5 cosponsors · Introduced Jan 15, 2026 · Referred to committee
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What it does
This bill codifies the Consumer Financial Protection Bureau's 2023 late-fee rule into federal law, capping credit card late fees at $8 for large issuers (those with 1+ million open accounts) and requiring that fees not exceed the issuer's actual costs. The cap can rise annually only by the inflation rate. This protects consumers from excessive penalty fees while allowing card companies to recover legitimate costs.
Why we flagged it
The bill's core function is to codify and enforce a regulatory cap on credit card late fees, protecting consumers from excessive penalty charges. It is consumer-protective legislation, not a carve-out or subsidy.
What the text implies
- The $8 cap may reduce late-fee revenue for card issuers, potentially shifting costs to other fees (annual fees, interest rates, or reduced rewards) or reducing credit availability for high-risk borrowers.
- The 'large credit card issuer' threshold (1M+ open accounts) exempts smaller issuers and regional banks from the cap, creating a two-tier system that may disadvantage consumers using smaller card products.
The full analysis lists 4 implications of this text.
Who stands to gain
consumers (reduced late fees); credit card issuers (codification provides regulatory certainty vs. ongoing CFPB rulemaking risk)