CFPB: Late payments fell from ’21-’24

Late rental payments fell from 2021-24, even as rental balances and fees increased, according to a recent report from the Consumer Financial Protection Bureau. 

Late rental payments fell from 2021-24, even as rental balances and fees increased, according to a recent report from the Consumer Financial Protection Bureau. 

The CFPB released two reports evaluating national rental payment data from the three-year period. 

The percentage of renters who paid late fees in the previous year reached 23 percent in February 2023. The rate fell to less than 14 percent as of November, according to the CFPB, even as the median outstanding rental balance increased 60 percent during the same time. 

More than 20 percent of renters with at least one late fee have at least five late fees in the past 12 months, according to the report. Late fees have risen since 2021, to $85 in November 2024. The reported outstanding rental balance increased to $3,200 in November from $2,000 in September 2021. Half of renters who were behind on their rent catch up in a single month, according to the report. 

Thirty-five percent of American households live in rental housing, according to the report, with rent being one of their largest expenses. “Falling behind on rent payments often indicates financial stress and puts families at risk of eviction,” according to the report. “While the data show that fewer renters are incurring late fees and that about 50 percent of renters who do incur a fee are able to bounce back to on-time payments, the data also reveal continued financial struggles for many renters.”  

Fredrikson & Byron Law