CARD Act, HOEPA fee indexes revised up
Jan. 3, 2014 – A penalty fees “safe harbor” under the Credit CARD Act is up $1 this year to a total over last, CFPB said in a recent final rule.
CFPB says creditors can assess up to $26 for a first late payment on a credit card account and $37 for each subsequent violation this year without running afoul of CARD Act rules. The minimum interest charge disclosure thresholds are unchanged.
The statutory fee trigger for added disclosures under the Home Ownership Equity Protection Act is also up to $632, an increase from last year’s fee trigger of $625.
The act requires CFPB to evaluate the safe harbor fees each year based on changes in the consumer price index for urban wage earners and clerical workers. For the HOEPA fee trigger, CFPB evaluates changes in the CPI for all urban consumers.