CFPB Praised for Proposed Crackdown on 'Exploitative' Credit Card Late Fees

The Biden administration on Wednesday was widely praised for unveilingregulatory changes that could save American families up to $9 billion a year by cracking down on unfair credit card late fees from U.S. banks.

The CFPB proposed amending regulations related to the Credit Card Accountability Responsibility and Disclosure Act to ensure that late fees—now as high as $41—are"reasonable and proportional" to the costs incurred by companies. The rule would limit most late fees to $8, ban fees greater than 25% of the required payment, and end automatic annual inflation adjustments.

Like Chopra, Liz Zelnick, director of economic security and corporate power at Accountable.US, highlighted that"despite Congress' ban on excessive late fees, the Federal Reserve's loophole has allowed greedy credit card companies to collect exorbitant charges that were designed to profit from consumers living paycheck-to-paycheck."

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Schumer tells House GOP to ‘come out of hiding’ and show proposed spending cutsSenate Majority Leader Charles E. Schumer escalated his rhetoric Monday over the standoff with the GOP on raising the nation’s debt ceiling, telling House Republicans that they need to “come out of hiding” to outline spending cuts in exchange for avoiding default. We can start by repealing pork spending in that beastly $1.7T Omnibus bill? Repeal the earmarks to secure foreign borders. Then the funding for LGBT programs, and Pet Projects, $1.6B for the Jan 6th hearings, $12.6B for IRS agents. The CHIPS act, that will only benefit China. Schumer is correct, one time in his career!
Source: WashTimes - 🏆 235. / 63 Read more »