The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on March 05, 2024, 08:42:34 pm
-
Published March 5, 2024 12:54pm EST
Banking industry erupts over Biden admin's new rule on credit card late fees: 'Should not be allowed'
Credit card late fees will be capped at $8, reducing average late fee of $32
By Kristen Altus FOXBusiness
Banking and credit card companies have started reacting to a new Biden administration rule that puts an $8 ceiling on credit card late fees.
"Today’s flawed final rule will not only reduce competition and increase the cost of credit, but will also result in more late payments, higher debt, lower credit scores and reduced credit access for those who need it most," American Bankers Association President and CEO Rob Nichols said in a press release provided to Fox News Digital.
"This rule should not be allowed to go into effect," he continued.
On Tuesday, The Consumer Financial Protection Bureau (CFPB) finalized a new rule to cap all credit card late fees at $8, which will apply to the country's largest credit card issuers, covering those with more than 1 million open accounts.
more
https://www.foxbusiness.com/media/banking-industry-erupts-biden-admins-new-rule-credit-card-late-fees-should-not-allowed
-
Well, how many of those late fees are due to sidelined mail.
I sent a payment to a creditor. It had 10 days to get there from the day after I dropped it in the box. We had two blizzards that month. The workers at the regional sorting center could not get to work for five days that month, and apparently, the backlog got shoved off in a corner. I was notified by the creditor that my payment was late. I made a payment (by phone) and stopped the payment on the check I had mailed. My next (monthly) payment went through normally. Then I got notification from the creditor that another payment had been refused, (the stopped payment check), and got tagged with a refused payment fee, two weeks after the next month's payment had gone through.
Apparently the folks at the USPS sorting center, instead of placing a priority on the backlogged mail, shoved it aside and picked at the pile in their spare time. (There were actually two payments involved, to different creditors, and all told, and a that point, it cost me over $120 to trust the postal service.)
When I explained the situation to the creditor, they relieved me of the charges that made up their end of the mess, keeping a loyal customer.
But I have to wonder how many people whose credit score was not above 800 were similarly screwed up, biting a chunk out of their budget (and maybe even hurting their credit) because of that foul up.
-
I actually support this new rule because the credit card companies are scummy and predatory, especially during and after the COVID lockdowns.
So screw them! :im waiting: