TROY, Mich.–A new survey of Americans finds most believe the CFPB’s credit card late fee cap of $8 will be helpful, with many saying it will even be “very helpful,” even as the majority of Americans are also unaware of it.
The sentiments were released by J.D. Power as part of its latest Banking and Payments Intelligence Report, a monthly series that examines consumer sentiment around financial health and the economy.
“Certainly, nobody likes late fees, and any proposed cap could be noticed by those hit by them,” J.D. Power said in releasing its findings. “Or could it? The data show 25% of customers have paid a credit card late fee in the past year (it’s even higher among those who classify themselves as ‘financially unhealthy’), and the vast majority said the fee was greater than the proposed limit of $8. Most consider this cap to be helpful, and some say it would be very helpful.
‘Most Not Aware’
“At the same time, most aren’t aware of it. Those who are skeptical it’ll go into effect,” J.D. Power said.
According to the company, 59% of customers view the proposal to cap late fees as at least somewhat helpful, with 23% considering it to be very helpful. Younger customers—and those who are financially unhealthy—are the most likely to see the cap as a benefit, the survey found.
“Even though this proposed legislation could help some bank customers, most are unaware of it,” J.D. Power said. “Two-thirds (67%) said they have not heard of this proposed change. And even once they do hear about it, many customers doubt it will come to fruition. More than half (52%) of all respondents say they do not believe this change will take effect this year.”
Additional Findings
Other findings in the newest survey:
- Many customers are also dealing with fraud. About a quarter think their risk of fraud has increased in the last 12 months, with older customers believing they are even more susceptible. In fact, as the report notes, “Customer ratings of both their bank and card issuer security protections have declined across all key metrics since June 2023, when J.D. Power established a baseline.” It’s better with those who classify themselves as “financial healthy” or those who are under 40, J.D. Power added, further noting that all of this comes as a significant slice of respondents say they are in less than fully financially healthy situations.
- While the changes in customers’ financial health are modest, they are trending slightly upward. Nearly one-third (32%) of respondents are financially healthy, while 44% fall into the vulnerable category. These are the most encouraging levels we’ve observed since August 2023.
- Customer sentiment regarding financial health status, stress levels and empowerment to improve one’s financial situation also ticked slightly upward to levels not seen since August 2023. These changes can be attributed to improving levels of customer savings to cover both short- and long-term needs.
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