Epoch Times
A federal judge has rejected the Consumer Financial Protection Bureau’s request to allow its rule capping credit card late fees to take effect.
U.S. District Judge Mark Pittman said in a Dec. 6 order that he was keeping his injunction in place.
The bureau announced in early 2024 a new rule that would cap late fees for credit cards at $8. The U.S. Chamber of Commerce sued, seeking to stop the rule from taking effect.
Pittman in May blocked the rule because of the way the Consumer Financial Protection Bureau (CFPB) is structured. The judge said at the time that because the independent regulatory agency is, according to an appeals court, unconstitutionally funded, any regulations it promulgates are likely unconstitutional as well. more here
A really bad decision to F.O. the working person to save themselves from missing out their million dollar executive payouts. And on top of that, they charge 30% interest. Have lived long enough to remember when interest was 3% the common peasant could make a reasonable living when we we were short on cash.
Personal rant here; but if the corrupt woke schools would even attepmt to teach our nations children how to understand & manage money/credit/debt there would be no suckers using a 30% credit card.
The CFPB should be the first (and that’s saying something) government agency to get axed, the whole lot.
Elizabeth Warren created it as a covert agency to promote the leftist agenda within the finance sector. The board consists of unelected bureaucrats, independent of congressional oversight (both in actions and funding) designed to teether institutions of lending. The DEI requirements, forgiving of student death, debanking right-wing platforms, all done by the CFPB.
Send them all to the unemployment office.
I too am ancient. I even remember when there were usury laws. Now, most CC companies offer rates that would impress a loan shark. Instead of calling it an interest rate, why not just be honest and call it the vig.
People don’t appreciate the LAWS of economics. If you cap the fees, then credit may very well dry up for the folks that are ALWAYS late, ALWAYS carrying a balance, etc. The way to avoid fees is to simply pay the credit card bill IN FULL when it arrives. That is what my wife and I have done forever. We enjoy the “free” loan and then pay it back. We have NEVER incurred a late fee or paid credit card interest. Live within your means.
The gov’t has tried to intervene in ‘payday loans’ and high cc fees before, and it has always ended in abject failure. There simply has to be a market for high-risk loans, which is what these are. They inevitably hurt the poor even more. Financial education is certainly important to help people avoid these loans, but if you need a loan to eat tonight, well Chase Bank lowered their rate but also canceled your card.
CFPB needs to get the Chevron treatment; it is an illegal agency.
A few years ago I applied for a business credit card. I could get the plain sedan with back-wall tires and no radio for under 2% interest and no fee, or I could get the one with mag wheels, white walls, 8-track stereo, leather seats, and moon roof for 23% interest and annual fee.
People need to realize that all these goodies are being paid for somehow.
“forgiving of student death”
Talk about a Freudian slip…………..but where’s the downside?
Credit card debt is at an all-time high;
https://www.msn.com/en-us/money/economy/credit-card-debt-hits-new-all-time-high-but-it-s-not-all-bad-news/ar-AA1uaAJQ
rich, I absolutely enjoyed the slip hahah