Biden’s New Plan For Credit Card Owners
If you own a credit card, this will impact you.
President Biden’s White House is now expected to propose a new rule which aims to lower credit card late fees to around just $8.
According to Fox, The Consumer Financial Protection Bureau (CFPB) is expected to unveil the new plan at President Biden’s fourth Competition Council meeting.
CFPB Director Rohit Chopra explained, “Over a decade ago, Congress banned excessive credit card late fees, but companies have exploited a regulatory loophole that has allowed them to escape scrutiny for charging an otherwise illegal junk fee. Today’s proposed rule seeks to save families billions of dollars and ensure the credit card market is fair and competitive.”
Biden’s administration believes that the high late fees for credit card payments are utterly disproportionate compared to the low costs they place on the credit card companies themselves.
The CFPB added, “Specifically, the proposed rule would lower the immunity provision for late fees to $8 for a missed payment as well as end the automatic annual inflation adjustment. The proposed rule would also ban late fee amounts above 25% of the consumer’s required payment.”
This is another step to combat what Biden often refers to as “junk fees” that plague middle to lower class Americans on a daily basis.
