Credit card late fees capped at $8 under Biden crackdown on 'junk fees'
Credit card late fees capped at $8 under Biden crackdown on 'junk fees'
The Biden administration finalized a rule Tuesday that will close a loophole to slash fees charged by companies from an average of $32 to $8.
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Great step forward. Now eliminate debit card overdrafting and those fees.
They're capping them too.
Sweet
The U.S. Chamber of Commerce said it would be filing a lawsuit against the CFPB "to prevent this misguided and harmful rule from going into effect.”
Don't hold your breath. The current state of the judiciary is nakedly hostile to administrative law generally and bank regulations specifically.
Keep an eye on Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. Might not even have the CFPB for much longer.
You likely will see most small banks end their overdraft programs as they will have too many losses without a way to make it back up on the fee income. Then the community banks will lose customers to the Bank of America type mega banks leading to less competition and worse banking conditions.
And people who spend money they don’t have will still be charged fees. Instead people will get charged fees on the other end for writing bad checks or missing payments due to auto payments being rejected for non sufficient funds.