Navigating High Credit Card Rates This Holiday Season

Banks like Synchrony and Bread Financial have raised interest rates and introduced new fees on credit cards in anticipation of a Consumer Financial Protection Bureau (CFPB) rule to cap late fees, which is now unlikely to be implemented. This has led to increased costs for consumers, particularly those with lower credit scores who rely on store-branded cards. The CFPB's proposed rule aimed to reduce late fees from an average of $32 to $8, but legal challenges have stalled its implementation, leaving consumers to face higher borrowing costs.