On February 1, the CFPB issued a much-anticipated proposed rule that, if adopted in its current form, would revolutionize the current regulatory regime for assessing credit card late fees by sharply decreasing the maximum amounts consumers may be charged for a late payment and, as a result, the corresponding late fee revenues received by issuers. The CFPB also signals in the release that it is considering other significant changes to the regime now governing credit card penalty fees, including eliminating safe harbors entirely and prohibiting issuers from imposing late fees within 15 days following the relevant due date. The proposed rule represents the most significant development to date in a series of CFPB initiatives aimed at reducing or eliminating bank fees that the CFPB views as harmful to consumers. Opposition is likely to be strenuous, including because, based on the CFPB’s own analysis, the proposed rule would reduce annual fee income of credit card issuers by billions of dollars annually.