: Feds move to crack down on ‘excessive’ credit-card late fees

by | Feb 1, 2023 | Stock Market

President Joe Biden is spotlighting new moves by the Consumer Financial Protection Bureau to cut excessive credit-card late fees that cost American families about $12 billion each year. The CFPB unveiled proposals that will potentially save Americans up to $9 billion a year by targeting late fees that are currently protected by an “expansive” immunity provision, which has allowed credit-card companies to hike fees along with inflation even when they face no additional collection costs.

“Junk fees are not only costly to consumers, but they can stifle competition by encouraging companies to use increasingly sophisticated tools to disguise the true price consumers face,” the White House said in a statement on Wednesday. “By reducing these fees and increasing transparency, we can provide relief to consumers and make our economy more competitive, particularly for new and growing businesses.” Industry groups quickly voiced objections to the plans, however. “The U.S. credit card market is highly competitive and provides customers across the credit spectrum with the ability to make payments anywhere at any time, free of charge if paid on time, and with antifraud and other protections,” according to a statement from the Bank Policy Institute. “The CFPB’s current contemplated government intervention, while presumab …

Article Attribution | Read More at Article Source

Share This