U.S. Banks Begin Lawsuit Against Biden for Rule to Limit Credit Card Late Fees (illegal, lobby)
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The U.S. government on Tuesday announced it would sharply limit the fees that credit card companies can charge customers who fall behind on their bills, aiming to cap the penalties at $8 in a move that is expected to draw fierce resistance from financial giants.
Quote:
Last May, the American Bankers Association and other lobbying groups representing Citigroup, JPMorgan Chase, Wells Fargo and Visa warned that the policy would force them to limit the perks they offer cardholders.
In doing so, they appeared to lay the groundwork to sue the government.
There goes Biden pandering and trying to buy votes again.
The interest rates are crazy on most credit cards but we know this when we sign up for them so people that are smart with their money know not to charge up the cards with no idea on how to pay them off. I think the responsible among us pay off the balance each month or carry very little.
The Feds getting involved with this is not a good idea because it will back fire like most plans they come up with and it will cost the average citizen MORE.
What is it with the Dems and their WAR on Capitalism?
There goes Biden pandering and trying to buy votes again.
The interest rates are crazy on most credit cards but we know this when we sign up for them so people that are smart with their money know not to charge up the cards with no idea on how to pay them off. I think the responsible among us pay off the balance each month or carry very little.
The Feds getting involved with this is not a good idea because it will back fire like most plans they come up with and it will cost the average citizen MORE.
What is it with the Dems and their WAR on Capitalism?
Argentina did this during the pandemic and inflation shot up to 200%.
Fees are excessive but some credit card companies only charge a late fee. Others jack up the interest rate after a late payment regardless of payment history or length of time with them. The interest rate is the real killer. I'd rather pay a late fee with the same or lower interest rate.
The Feds getting involved with this is not a good idea because it will back fire like most plans they come up with and it will cost the average citizen MORE.
Politicians love to pass laws like this so they can crow about how they helped.
Meanwhile, the companies just adjust by restricting credit or benefits or lowering service etc. etc.
I can appreciate regulation aimed at stopping things that are truly predatory or fraudulent etc. but I've seen the government create big problems out of small ones by "helping".
I agree with Biden on nothing but I don't think this is the worst idea. Yeah everyone knows when they get a credit card that the rates are absurd when you consider what the banks are paying for the money.
The Consumer Financial Protection Bureau (CFPB) finalized a rule Tuesday to limit late payment fees issued by credit card companies, a move the agency says will reduce the typical fee by 75 percent and save U.S. consumers an average of $220 per year.
If someone meets their obligation every month it won't save that consumer anything...because they don't pay fees. These fees are only for people who are late.
The only thing this does is encourage people who are chronically late to continue the pattern because it is now "cheaper" to be late. When I was younger, I was late on some cards...getting the high late fee sure cured me of thinking that was a good thing quickly.
However, having the Government come in and change the terms because they feel that the banks are making too much money is not the way to go.
The banks are going to make this up somehow or dump these "problem" payers. People who are late may only be paying $8. But that "no-fee" credit card that they have that is meant for your average borrower now has an annual fee of $50 that everyone must pay.
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