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Late Fees

All articles tagged with #late fees

business1 year ago

"Department Stores Navigate New Challenges with Credit Card Revenue and Fees"

Department stores like Macy's and Kohl's are facing a potential revenue squeeze as the Consumer Financial Protection Bureau's new rule will cap late fees on store-branded credit cards at $8, down from an industry average of around $32, starting this spring. This change is expected to impact retailers' highly profitable business of making money from customers' credit card swipes and the interest or late fees that get tacked onto their unpaid balances. Specialty retailers with store cards, such as Gap, will also feel the pinch, but it'll be most significant at department stores, which are already under pressure due to declining revenue. Retailers are exploring strategies to offset the potential losses, such as increasing APRs or transitioning customers to co-branded cards that can be used for other purchases.

via CNBC|
#business#consumer-financial-protection-bureau#department-stores
legal-banking-regulation1 year ago

"Texas Judge Challenges Banking Industry's Venue Shopping in Late Fee Case"

A Texas federal judge accused major banking industry groups and the U.S. Chamber of Commerce of venue shopping in their lawsuit against the Consumer Financial Protection Bureau, ruling that the case should be transferred to Washington, where the banking lobby has more legal resources. The lawsuit concerns the CFPB's new regulations on credit card late fees, which the banking industry is seeking to stop due to potential revenue losses. The judge found little reason for the lawsuit to be filed in Texas and agreed with the Biden administration that Washington is a more appropriate venue for the case.

via AOL|
#banking-industry#cfpb#late-fees
politics1 year ago

"Biden's Credit Card Late Fee Cap Faces Legal Challenge from Trade Groups and Business Associations"

President Biden aims to cap credit card late fees at $8, but the banking industry is suing to block the move, arguing that the Consumer Financial Protection Bureau lacks the authority to set such limits. The lawsuit comes as part of a broader effort by the Biden administration to strengthen consumer protections in the financial sector.

via Daily Kos|
#biden#consumer-protection#credit-card
finance1 year ago

"Biden's $8 Cap on Credit Card Late Fees Aims to Ease Financial Burden on Americans"

The Consumer Financial Protection Bureau (CFPB) has finalized a rule capping credit card late fees at $8 per incident, down from an industry average of $32, in an effort to eliminate "junk fees" and save consumers over $10 billion annually. This new regulation closes a loophole that allowed automatic fee increases without evidence of increased costs, and is part of the Biden administration's push to curb unnecessary charges. While this move benefits consumers, credit card issuers may respond by raising other fees or tightening card approvals.

via CNBC|
#biden-administration#consumer-financial-protection-bureau#credit-cards
business1 year ago

"Biden's Crackdown: Credit Card Late Fees Capped at $8 Amid Rising Missed Payments"

The Consumer Financial Protection Bureau has finalized a new federal rule capping most credit card late fees at $8 per month, estimating that the change will save households $10 billion annually. Late fees have been a significant source of profit for credit card issuers, generating over $14 billion in 2022. The new restriction, which applies to large issuers with more than one million open accounts, aims to limit fees unless issuers can prove the need to charge more to cover actual collection costs. Banking trade groups are expected to oppose the rule and may file litigation to try to block it.

via The New York Times|
#banking-industry#business#consumer-financial-protection-bureau
finance1 year ago

"Biden Administration Caps Credit Card Late Fees at $8, Sparking Controversy"

Federal regulators have finalized a rule to cap most credit card late fees at $8, estimated to save families over $10 billion a year, as part of the Biden administration's crackdown on junk fees. The new regulation applies to large credit card issuers and aims to help families struggling with high living costs and record credit card debt. The financial industry has criticized the rule, with the US Chamber of Commerce threatening to file a lawsuit, while consumer advocates and Senator Elizabeth Warren have praised the move as a way to protect working people from excessive fees.

via CNN|
#biden-administration#consumer-financial-protection-bureau#credit-cards
finance1 year ago

"Biden Administration Caps Credit Card Late Fees at $8 and Launches Task Force to Crack Down on Unfair Pricing"

The Biden administration has finalized a new rule capping all credit card late fees at $8, estimated to save American families over $10 billion annually, with the rule applying to the largest credit card issuers covering 95% of outstanding credit card balances. This move is part of a broader initiative to limit hidden surcharges and reduce costs for consumers amidst high inflation. While praised by the Consumer Financial Protection Bureau, major financial institutions have criticized the rule, warning of potential negative impacts on competition, credit access, and consumer costs.

via Fox Business|
#biden-administration#consumer-financial-protection-bureau#credit-cards
finance1 year ago

"Biden Administration Caps Credit Card Late Fees at $8 in New Rule"

The Consumer Financial Protection Bureau has introduced a new rule capping banks' credit card late fees at $8 per incident, a significant reduction from the current average of around $32. This change is expected to save more than 45 million card users an average of $220 annually. CFPB Director Rohit Chopra stated that the rule aims to put an end to credit card companies exploiting a loophole to charge excessive fees, ultimately benefiting American consumers.

via CNBC|
#banking#cfpb#consumer-protection
financial-regulation1 year ago

"Biden Administration Takes Aim at Excessive Credit Card Late Fees, Caps Average Fee at $8"

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to cut excessive credit card late fees, estimating that American families will save over $10 billion annually by reducing the typical fee from $32 to $8. The rule applies to the largest credit card issuers and aims to end the automatic annual inflation adjustment for late fees, requiring issuers to prove that higher fees are necessary to cover actual collection costs. This effort is part of the CFPB's ongoing work to address issues in the credit card market, including high interest rates and illegal conduct by credit card companies.

via Consumer Financial Protection Bureau|
#consumer-financial-protection-bureau#consumer-protection#credit-card-fees
energy2 years ago

DTE's Paperless Billing Battle: Apologies and Reversals

DTE Energy, a major electricity provider in southeast Michigan, has announced that it will no longer automatically enroll customers in its paperless billing program. The company had previously implemented a pilot program in 2019 where customers would be automatically enrolled in eBill after opening an email from the utility, regardless of their preference for paper bills. The decision to reverse this policy comes after mixed customer reactions and a request from the Michigan Attorney General for an investigation. DTE will also reimburse customers who incurred late fees due to the switch from paper to digital billing. The eBill program aims to reduce paper usage and billing costs.

via Detroit Free Press|
#customer-enrollment#dte-energy#energy