Biden administration moves to curb credit card late fees

The move was announced as part of the White House’s broader efforts to limit fees across a number of consumer-facing products, from airline fares toThe Consumer Financial Protection Bureau proposed capping credit card late fees at $8 Wednesday, which would be lower than the up to $41 that some companies charge on top of interest payments.

“We worry that credit card companies are actually hoping that consumers are a day or two late so that they can cash in on fees,” Biden-appointed CFPB Director Rohit Chopra told reporters. The CFPB rule would tighten a regulation from a 2009 law known as the Credit Card Accountability Responsibility and Disclosure Act, which requires companies to charge only “reasonable and proportional” fees to cover the cost of handling late payments.

Credit card companies were using the provision to charge as much as $41, which the CFPB estimates is five times greater than the cost of collecting late payments. “Companies would be able to charge above the immunity provision so long as they could prove the higher fee is necessary to cover their incurred collection costs,” a CFPB document clarified.The agency said in June it would

How about the interest rate!

What about LOWERING interest rates....what if we just got PAID more....those are better solutions than temporary solutions.

Credit cards are horrible. They are charging up to 25% interest rates to people who are struggling to make ends meet. It's legalized loan-sharking.

Really? Biden ignores the middle class yet again.

In a free market, government has absolutely no business setting prices or establishing limits. Period.

The left’s crusade to end all consequences continues. Because why would we want people to actually learn to be responsible humans?

Socialist have such great ideas.

Let's get back to usury laws and limit excessive interest rates.

Capping it at $8 would make a huge difference to people when some credit companies charge over $40.

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Source: WSJ - 🏆 98. / 63 Read more »