While it’s hardly surprising that those with the worst credit scores pay the most in late fees—after all, paying bills late is one of the things that reduces your credit score—the bureau points out those customers are also most likely carrying balances and paying interest on the money they owe on top of the late fees, which may blindside borrowers. In recent months, the bureau has scrutinized what it calls “exploitative junk fees’’ that it says are unfair or unexpected, including credit card late fees and bank overdraft fees. The bureau’s campaign has met with one major success so far: The largest banks have reduced or eliminated their overdraft fees in recent months.The American Bankers Association, a trade group representing the industry, said the government already requires fees to be clearly disclosed, and their levels are capped by regulators.“Left out of this report is any mention of the millions of consumers who value and appreciate the safety and convenience provided by the credit cards they use every day, as well as the wide array of options they have to choose from when they pick a credit card,” an association spokesman said in an email. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
