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American Express (AXP) Raises Late Fees to $38 from 2017

American Express Company AXP seems to be acting fast, in order to take advantage of the Consumer Financial Protection Bureau’s updated guidelines that increased the maximum penalties for credit card late fee by $1 to $38.

According to the website of American Express, beginning Jan 2017, the NY-based company is set to charge up to $38 to its customers, if they make more than one late payment in a six-month period. Also, the company stated that if customers fail to make timely payments for two billing periods in a row, the late fee will be $38 or 2.99% of the past due amount, whichever is greater. However, late fee stays at $27 when customers fail to make timely payment for the first time.

The news, first reported by The Wall Street Journal on Friday, quoted the company saying, “There are business costs associated with not paying on time, and late fees are intended to recapture some of that cost.” The company further mentioned that “a very small number” of...