Credit card late fees capped at $8 under new Biden admin ‘harmful’ rule
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Biden goes after credit card late fees with ‘harmful’ new rule.
…major financial institutions slammed the latest rule targeting credit card late fees, warning that it could ultimately hurt consumers by reducing competition, increasing the cost of credit, causing more people to pay late and reducing credit access for those who need it more.
“The Bureau’s misguided decision to cap credit card late fees at a level far below banks’ actual costs will force card issuers to reduce credit lines, tighten standards for new accounts and raise APRs for all consumers – even those who pay on time,” said Rob Nichols, the president and CEO of the American Bankers Association.
The American Bankers Association pledged that it would fight the “harmful consumer policy” by the CFPB, while the Chamber of Commerce said it would “immediately” file a lawsuit against the CFPB.
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