A new survey commissioned by the Consumer Bankers Association found that most Americans believe that credit card late fees are legitimate.
The poll said that 57 percent of those surveyed said they were legitimate and not junk fees, particularly when compared to late fees from other industries. For example, only 18 percent found legitimate airline fees to select a seat or check a bag and just 16 percent found hotel resort fees to be legitimate. Worst was fees for live event ticket services or convenience fees, which only 12 percent said were legitimate.
In addition, the survey found that 48 percent of Americans are unaware of the consequences associated with paying a credit card bill late, while 76 percent support the idea that paying on time is a personal responsibility.
“As we all work to support hardworking families and small businesses struggling with economic headwinds, this survey confirms credit card late fees are not considered junk – they’re part of a financial framework millions of consumers rely on. In fact, Americans overwhelmingly believe credit card late fees are legitimate, as opposed to fees charged in other sectors of the economy, value the service credit card issuers provide, and accept the responsibility of being a credit cardholder and paying on time,” CBA President and CEO Lindsey Johnson said.
This survey comes as the Consumer Financial Protection Bureau (CFPB) has proposed a rule that would cap credit card lates fees at 25 percent of the required minimum payment, among other provisions. The rule was published in the Federal Register on March 29 and the comment period is open until May 3.
The survey was conducted for CBA by ClearPath Strategies from February 24-28. It included responses from 1,197 adults across the U.S.