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Bill

A 7075

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 or twenty dollars

2025 Regular Session Introduced by Rodneyse Bichotte Hermelyn and 2 co-sponsors

Bill A 7075 caps credit card late fees at 5% of the unpaid balance or $20, protecting consumers from excessive charges and easing financial strain.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION
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WeVote Research Nonpartisan
Bill Summary · A 7075

Summary of Bill A 7075

Overview

Bill Number: A 7075
Title: 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 or twenty dollars.
Status: Referred to Consumer Affairs and Protection
Introduced: March 20, 2025

Purpose and Intent

The primary purpose of Bill A 7075 is to regulate the late payment fees imposed by credit card companies. The bill aims to protect consumers from excessive late fees, ensuring that such charges remain manageable and predictable. By capping late fees, the bill seeks to alleviate financial strain on consumers who may face unexpected circumstances leading to late payments.

Key Provisions

  • Fee Cap: The bill stipulates that any late payment charges assessed by credit card companies must not exceed:
    • Five percent of the unpaid balance of any bill, or
    • Twenty dollars, whichever is lower.

This provision is designed to provide a clear and enforceable limit on late fees, making it easier for consumers to understand their potential liabilities.

Impact

  • Consumers: The bill directly affects credit card users by limiting the financial penalties they face for late payments. This could lead to significant savings for consumers, particularly those who may struggle with timely payments due to unforeseen circumstances.

  • Credit Card Companies: Financial institutions and credit card companies will need to adjust their billing practices to comply with the new fee structure. This may impact their revenue from late fees, prompting them to reconsider their overall fee strategies.

Procedural Aspects

  • The bill was introduced on March 20, 2025, and has been referred to the Consumer Affairs and Protection committee for further consideration. The timeline for further legislative action will depend on the committee's schedule and subsequent votes.

Related Legislation

Bill A 7075 is part of a broader legislative context, with several related bills from prior sessions, including:
- A 1572
- A 1369
- A 1009
- A 487
- A 7715
- A 156
- A 397
- A 600
- A 4590

Additionally, there is a companion bill, S 4022, which may address similar issues in the Senate.

Conclusion

Bill A 7075 represents a significant step towards consumer protection in the realm of credit card fees. By capping late payment charges, the bill aims to create a fairer financial environment for consumers, reducing the burden of unexpected fees and promoting responsible credit use. Further developments will be monitored as the bill progresses through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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