# § 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 may impose with respect to a credit card account under an open end consumer credit plan in connection with any omission with respect to, or violation of, the cardholder agreement, 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** May 22, 2009May 22, 2009
The Bureau, in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, shall issue final rules not later than 9 months after , to establish standards for assessing whether the amount of any penalty fee or charge described under subsection (a) is reasonable and proportional to the omission or violation to which the fee or charge relates. Subsection (a) shall become effective 15 months after .
**(c)** **Considerations** In issuing rules required by this section, the Bureau shall consider—
**(1)** the cost incurred by the creditor from such omission or violation;
**(2)** the deterrence of such omission or violation by the cardholder;
**(3)** the conduct of the cardholder; and
**(4)** such other factors as the Bureau may deem necessary or appropriate.
**(d)** **Differentiation permitted** In issuing rules required by this subsection, the Bureau may establish different standards for different types of fees and charges, as appropriate.
**(e)** **Safe harbor rule authorized** The Bureau, in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, may issue rules to provide an amount for any penalty fee or charge described under subsection (a) that is presumed to be reasonable and proportional to the omission or violation to which the fee or charge relates.
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**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.)
## Editorial Notes
### Amendments
2010—Subsecs. (b) to (e). , 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 effective on the designated transfer date, see , set out as a note under , Government Organization and Employees.
### Effective Date
Section effective 9 months after , except as otherwise specifically provided, see , set out as an Effective Date of 2009 Amendment note under .