CFPB to cap banks' credit card late fees at $8

[pizzadude]

The Consumer Financial Protection Bureau unveiled a new rule on Tuesday that it said would cap late fees that banks charge customers at $8 per incident, after the agency said it reviewed market data related to the 2009 Card Act.

The new rule, long expected after an initial proposal  was floated early last year, comes after the agency said it reviewed market data related to the 2009 Card Act. Regulations tied to that law granted card issuers the ability to charge ever-increasing amounts of late fees.

"For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers," CFPB Director Rohit Chopra said in the release. "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."

https://www.msn.com/en-us/money/companies/new-cfpb-rule-caps-banks-credit-card-late-fees-at-8/ar-BB1...

[ptatohed]

I saw that, thanks pizza.  I don’t know how I feel about this actually.  I do think many fees are much too high.  But the selfish part of me knows these fees and interest charges that other people pay, pay for my credit cards rewards!  And I do think a late fee ‘should’ sting.  If you are late on your obligations, it should be more than a swat on the wrist.  But I do agree with some sort of cap.  

[Anonymalous]

Thanks for posting the article. Here's a link to the original proposal, comments, and final rule on the CFPB website:

https://www.consumerfinance.gov/rules-policy/final-rules/credit-card-penalty-fees-final-rule/

[CorpCrMgr1]

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@pizzadude wrote:

The Consumer Financial Protection Bureau unveiled a new rule on Tuesday that it said would cap late fees that banks charge customers at $8 per incident, after the agency said it reviewed market data related to the 2009 Card Act.

The new rule, long expected after an initial proposal  was floated early last year, comes after the agency said it reviewed market data related to the 2009 Card Act. Regulations tied to that law granted card issuers the ability to charge ever-increasing amounts of late fees.

"For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers," CFPB Director Rohit Chopra said in the release. "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."

https://www.msn.com/en-us/money/companies/new-cfpb-rule-caps-banks-credit-card-late-fees-at-8/ar-BB1...

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Thank you for sharing the link!

[EAT_SLEEP_JEEP]

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@ptatohed wrote:

I saw that, thanks pizza.  I don’t know how I feel about this actually.  I do think many fees are much too high.  But the selfish part of me knows these fees and interest charges that other people pay, pay for my credit cards rewards!  And I do think a late fee ‘should’ sting.  If you are late on your obligations, it should be more than a swat on the wrist.  But I do agree with some sort of cap.  

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I feel the same way as someone who has been on the bad and good side of credit, even when it hurt getting pounded by the fee's and interest I had no one to blame but myself. You know the rules if you care to pay attention and read them before you start playing the game. By nature sometimes we really do bound our own hands and get upset and call it unfair and try ro blame others.