Is there a limit on the amount of fees a credit card company can charge?

Yes, credit card companies operating in Washington are limited in the amount of fees they can charge. Under the Washington Consumer Loan Act and the Federal Truth in Lending Act, creditors, such as credit card companies, are limited to charging fees that are “reasonable and not in excess of the fees charged for similar financial transactions by others in the same locality”. The fee must also be related to the cost of the services being provided. For instance, when a credit card company charges late fees, they can only charge the amount it costs them to process the late payment. It is important to note that these fees are capped according to the amount of the debt, so if the debt is more than $1,000, then the late fee cannot exceed $25. Any late fees that are excessive or are not related to the cost of services being provided are illegal and cannot be charged. It is also important to note that Washington state law has a cap on the amount of late fees that can be charged for residential mortgages. The fee is capped at 5% of the payment that is late or $75, whichever is less. This cap applies to all mortgage lenders operating in Washington. Credit card companies in Washington must abide by these laws in order to remain in compliance with the law. While there are limits on the amount of fees that can be charged, it is important to also keep track of your payments and be sure to make them on time in order to avoid any late fees.

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Is there a limit on the amount of fees a credit card company can charge?

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