Bill > S04022

This bill amends the New York General Business Law by adding a new section that caps late payment charges for credit card companies. Specifically, the legislation limits late fees to either five percent of the unpaid balance (including any interest) or twenty dollars, whichever amount is smaller. This provision aims to protect consumers from excessive late payment penalties by credit card issuers, ensuring that cardholders are not disproportionately penalized for missing a payment deadline. The bill will go into effect 90 days after it becomes law, giving credit card companies time to adjust their fee structures to comply with the new regulation. By setting a clear maximum on late charges, the bill seeks to provide more predictable and consumer-friendly fee practices in the credit card industry.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S4022