(C) Common Dreams
This story was originally published by Common Dreams and is unaltered.
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New Rule Under Biden Would Save Americans $10 Billion a Year in Credit Card Fees [1]
['Thor Benson', 'Thor Benson Is A Former Staff Writer For Common Dreams.']
Date: 2024-03-05 18:49:07+00:00
As part of the Biden's administration's efforts to eliminate so-called "junk fees," the Consumer Financial Protection Bureau has finalized a rule that would cap credit card late fees at $8.
The average credit card late fee is $32, so the savings for consumers could be huge. The CFPB estimates that, once it takes effect, the new rule will save Americans over $10 billion a year.
"For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers," Rohit Chopra, director of the Consumer Financial Protection Bureau, said Tuesday. "Today's rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines."
For over a decade, credit card giants have exploited a loophole to harvest billions of dollars in junk fees from consumers. Today, the @CFPB is closing this loophole and reducing the typical credit card late fee from $32 to $8.
https://t.co/yCD7RjZN2p
— Rohit Chopra (@chopracfpb) March 5, 2024
The corporate watchdog Acountable.US praised the move but also noted that it will likely "run into immediate legal and legislative attacks from big banks."
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[1] Url:
https://www.commondreams.org/news/biden-cfpb-credit-card-fees
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