---
kind: "section"
citation: "15 U.S.C. § 1665d"
title: "15"
title_heading: "Commerce and Trade"
number: "1665d"
heading: "Reasonable penalty fees on open end consumer credit plans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1665d"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part C — Credit Advertising and Limits on Credit Card Fees"
---

# §1665d. Reasonable penalty fees on open end consumer credit plans

- (a) **In general—** The amount of any penalty fee or charge that a [card issuer](/usc/15/1602.md?p=o) may impose with respect to a [credit card](/usc/15/1602.md?p=l) [account](/usc/15/1681a.md?p=r-4) under an [open end consumer credit plan](/usc/15/1602.md?p=j) in connection with any omission with respect to, or violation of, the [cardholder](/usc/15/1602.md?p=n) [agreement](/usc/15/7a.md?p=2), including any late payment fee, over-the-limit fee, or any other penalty fee or charge, shall be reasonable and proportional to such omission or violation.
- (b) **Rulemaking required—** The [Bureau](/usc/15/1602.md?p=b), in consultation with the Comptroller of the Currency, the [Board](/usc/15/1602.md?p=c) of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National [Credit](/usc/15/1602.md?p=f) Union [Administration](/usc/15/636e.md?p=1) [Board](/usc/15/1602.md?p=c), shall issue final rules not later than 9 months after May 22, 2009, to establish standards for assessing whether the amount of any penalty fee or charge described under [subsection (a)](#a) is reasonable and proportional to the omission or violation to which the fee or charge relates. [Subsection (a)](#a) shall become effective 15 months after May 22, 2009.
- (c) **Considerations—** In issuing rules required by this section, the [Bureau](/usc/15/1602.md?p=b) shall consider—
  - (1) the cost incurred by the [creditor](/usc/15/1602.md?p=g) from such omission or violation;
  - (2) the deterrence of such omission or violation by the [cardholder](/usc/15/1602.md?p=n);
  - (3) the conduct of the [cardholder](/usc/15/1602.md?p=n); and
  - (4) such other factors as the [Bureau](/usc/15/1602.md?p=b) may deem necessary or appropriate.
- (d) **Differentiation permitted—** In issuing rules required by this subsection, the [Bureau](/usc/15/1602.md?p=b) may establish different standards for different types of fees and charges, as appropriate.
- (e) **Safe harbor rule authorized—** The [Bureau](/usc/15/1602.md?p=b), in consultation with the Comptroller of the Currency, the [Board](/usc/15/1602.md?p=c) of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National [Credit](/usc/15/1602.md?p=f) Union [Administration](/usc/15/636e.md?p=1) [Board](/usc/15/1602.md?p=c), may issue rules to provide an amount for any penalty fee or charge described under [subsection (a)](#a) that is presumed to be reasonable and proportional to the omission or violation to which the fee or charge relates.

## Source credit

(Pub. L. 90–321, title I, § 149, as added Pub. L. 111–24, title I, § 102(b)(1), May 22, 2009, 123 Stat. 1740; amended Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

## Notes

### Editorial Notes

### Amendments

2010—Subsecs. (b) to (e). Pub. L. 111–203, § 1100A(2), which directed amendment of this section by substituting “Bureau” for “Board” wherever appearing, was executed by making the substitution for “Board” the first time appearing in subsecs. (b) and (e), and wherever appearing in subsecs. (c) and (d), to reflect the probable intent of Congress.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

### Effective Date

Section effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as an Effective Date of 2009 Amendment note under section 1602 of this title.