How much can credit card companies charge for late fees?

As of 2026, the maximum late fee is $32 for the first violation and $43 for subsequent violations within six billing cycles. These amounts are adjusted annually for inflation by the CFPB. Some proposed regulations would cap late fees at $8, but current limits remain higher. Credit card issuers cannot charge more than these maximums.

Can I get a late fee waived?

Yes, credit card issuers often waive late fees upon request, especially for first-time violations or customers with good payment history. Call customer service, explain the situation, and ask for a one-time courtesy waiver. Many issuers will comply to retain good customers. Some cards also offer grace periods or first-time waiver policies.

When are late fees illegal?

Late fees are illegal if: they exceed CFPB maximums, the payment was not at least 14 days late, the cardholder was in a hardship program that suspended fees, the issuer failed to provide proper billing notice, or the fee violates state usury or consumer protection laws. Military members have additional protections under the Servicemembers Civil Relief Act.

Do late fees affect my credit score?

The late fee itself doesn't affect your credit score. However, if you're 30+ days late on payment, the creditor can report the late payment to credit bureaus, which significantly impacts your score. A single 30-day late payment can reduce your score by 60-100 points. Pay before the 30-day mark to avoid credit reporting.

Credit Card Late Fees: What the Law Says and How to Fight Unfair Charges

Published March 25, 2026 | 8 min read

 Key Fact: Credit card late fees are regulated by federal law. As of 2026, the maximum is $32 for first violations and $43 for repeat violations. However, you can often get these fees waived by simply asking—especially for first-time offenses.

Americans pay over $12 billion in credit card late fees every year. For many, these fees pile on top of already-struggling finances, creating a cycle that's hard to escape. But late fees aren't unlimited—federal law sets clear boundaries, and you have more power to challenge them than you might think.

This guide explains the legal limits on late fees, when they're unfair or illegal, and exactly how to get them waived or refunded.

$12 billion

Paid annually in credit card late fees by Americans

The Legal Framework: CARD Act Protections

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 established key protections for credit card holders. Among other things, it requires that late fees be "reasonable and proportional" to the violation.

Current Fee Limits (2026)

Violation	Maximum Fee
First late payment	$32
Subsequent violations (within 6 billing cycles)	$43

These amounts are adjusted annually for inflation by the Consumer Financial Protection Bureau (CFPB).

Important: Proposed CFPB regulations in 2024-2025 would cap late fees at $8, but as of March 2026, the higher limits remain in effect due to ongoing legal challenges from the banking industry.

When Late Fees Are Legal

Credit card issuers can legally charge late fees when:

Payment is at least 14 days late: The CARD Act requires a grace period—issuers cannot charge late fees until the payment is at least 14 days past due
Proper notice was given: Your statement must clearly show the due date and minimum payment
Fee doesn't exceed limits: Must stay within CFPB maximums
No hardship agreement in place: If you're in a hardship program, fees may be suspended

When Late Fees Are Illegal or Unfair

Clearly Illegal Situations

Fee exceeds CFPB maximum: Any late fee over $32/$43 is illegal
Payment wasn't 14 days late: Fees charged before 14 days violate the CARD Act
No proper billing notice: If you didn't receive a statement or it was mailed less than 21 days before the due date
Already in hardship program: Some programs suspend late fees
Service member protections: SCRA limits fees to 6% for eligible military members

Potentially Unfair Situations

Technical glitches: Online payment system failures, app crashes
Bank processing delays: Payments submitted on time but processed late due to bank error
Death or serious illness: Hospitalization, family emergency
Natural disasters: Events that prevented timely payment
First-time mistake: Long history of on-time payments, one-time error

Good to Know: Even when late fees are technically legal, issuers often waive them for customers with good payment history. It never hurts to ask.

How to Get Late Fees Waived

Step 1: Act Quickly

Call as soon as you notice the late fee. The sooner you act, the better your chances:

Call within 1-3 days of noticing the fee
Have your account information ready
Be polite but firm

Step 2: Use the Right Script

First-Time Waiver Request:

"Hi, I noticed a late fee on my account. I've been a customer for [X years] and I've always paid on time until now. This was an oversight on my part. Can you waive this late fee as a one-time courtesy?"

Hardship Waiver Request:

"I had a late fee charged due to [brief explanation: medical emergency, job loss, etc.]. I'm working to get caught up, and I'd appreciate if you could waive this fee given the circumstances. I value being a customer and want to continue making on-time payments going forward."

Technical Issue Waiver Request:

"I attempted to make my payment on time through [online/phone/app], but the system was down. I have confirmation that I tried to pay on [date]. Since this was a technical issue beyond my control, can you waive the late fee?"

Step 3: Escalate if Necessary

If the first representative says no:

Ask for a supervisor: "Is there a supervisor who might be able to review this?"
Mention your value: "I've been a loyal customer for X years..."
Hint at competition: "I'm considering switching to a card that's more forgiving of occasional mistakes..."
Be persistent but polite: Aggression rarely works

✅ Late Fee Waiver Success Tips

Call during business hours (not automated systems)
Have your account number and details ready
Reference your payment history if it's good
Be honest about the reason
Ask specifically for a "courtesy waiver"
Get confirmation number or email
Follow up in writing if promised a waiver

Preventing Future Late Fees

Set Up Autopay

The easiest way to avoid late fees:

Minimum payment autopay: Ensures you never pay late (but may still accrue interest)
Full balance autopay: Best option—avoids both fees and interest
Fixed amount autopay: Set a specific payment each month

Pro Tip: Even if you prefer manual payments, set up autopay for at least the minimum as a safety net.

Payment Reminders

Enable text and email alerts from your card issuer
Set calendar reminders 3-5 days before due date
Use budgeting apps with bill tracking (Mint, YNAB, etc.)

Change Your Due Date

Most issuers let you change your payment due date:

Align with your payday
Consolidate multiple cards to the same date
Avoid end-of-month when bills pile up

What About Late Payments on Your Credit Report?

Critical Distinction: Getting a late fee waived does NOT automatically remove the late payment from your credit report. These are separate issues.

Credit Reporting Timeline

Days Late	Late Fee?	Credit Report Impact?
1-13 days	No (by law)	No
14-29 days	Yes	No
30-59 days	Yes	Yes—30-day late marks your credit
60-89 days	Yes	Yes—additional negative reporting
90+ days	Yes	Yes—severe damage, possible charge-off

If You're Already 30+ Days Late

You have additional concerns beyond the fee:

Pay immediately: Minimize further damage
Request goodwill deletion: Ask creditor to remove the late mark from your credit report
Write a goodwill letter: Explain the situation and request deletion as a courtesy
Dispute if inaccurate: If the late reporting is wrong, dispute with credit bureaus

Goodwill Letter Template:

"Dear [Creditor], I'm writing to respectfully request a goodwill adjustment to remove the 30-day late payment reported on [date]. I've been a loyal customer for [X years] with an otherwise perfect payment history. This late payment was due to [brief explanation] and does not reflect my typical financial responsibility. I've since [taken steps to prevent recurrence]. I would greatly appreciate your consideration in removing this late mark from my credit report."

Filing a Complaint

If your issuer refuses to waive an illegal or clearly unfair late fee:

CFPB Complaint

File at: consumerfinance.gov/complaint
Include: account details, timeline, fee amount, why it's unfair
Response: Issuer must respond within 15 days
Outcome: Many complaints result in fee refunds

State Attorney General

File with your state's consumer protection division
Some states have additional protections beyond federal law

🛡️ Late Fees Leading to Collection Calls?

If unpaid late fees have pushed your account into collections, you have rights. Our free Debt Validation Letter can help you pause collection activity and verify the debt—including whether those late fees were legally charged.

Generate Your Free Debt Validation Letter

100% free • FDCPA-protected • Stops collection activity

Special Protections

Military Members (SCRA)

The Servicemembers Civil Relief Act provides additional protections:

Interest rate capped at 6% during active duty
Some fees may be limited or waived
Additional protections against default judgments

Hardship Programs

Many issuers offer formal hardship programs that:

Reduce or waive late fees
Lower interest rates
Reduce minimum payments
Provide temporary payment deferral

Ask your issuer: "Do you have a hardship program I might qualify for?"

Key Takeaways

Late fees are capped at $32 (first violation) and $43 (repeat) as of 2026
Fees cannot be charged until payment is at least 14 days late
Many late fees can be waived by simply asking—especially for first-time offenses
Set up autopay as a safety net to avoid future fees
Late fees and late credit reporting are separate issues—both need attention
File a CFPB complaint if your issuer refuses to waive illegal fees
Military members have additional protections under SCRA

Late fees are frustrating, but you're not powerless. Federal law provides protections, and issuers often waive fees for customers who ask. Don't let a late fee spiral into bigger financial problems—take action today.