Advocacy News – March 7, 2024
What’s New? The Biden Administration, through a new rule issued by the Consumer Financial Protection Bureau (CFPB), established a cap on credit card late fees, a dangerous example of governmental overreach in the private sector. This rule would change the amount a credit card company could charge for late fees from the current average of $32 to $8.
-
Advocates for the rule claim that these efforts are meant to address a 2010 federal change that allows credit card companies to charge higher late fees than necessary.
-
However, in a poll conducted by FGS Global, 71% of credit card holders agree that late fees are necessary to cover the risks and costs of late payments.
What they’re saying: The U.S. Chamber released their thoughts on the Biden Administration overstepping their authority by stating, “The agency’s final credit card late fee rule punishes Americans who pay their credit card bills on time by forcing them to pay for those who don’t. This will result in fewer card offerings and limit access to affordable credit for many consumers.”
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.