The CFPB continues its attack on all kinds of junk fees charged by banks. This time they are targeting credit card late fees.
In a long-anticipated move, this morning the CFPB unveiled a new rule that would cap credit card late fees at $8 per incident.
The average right now is around $32, so this would save the 45 million consumers who are charged late fees $220 per year.
Here is what CFPB Director Rohit Chopra had to say about implementing this new rule:
“For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers. Today’s rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines.”
The rule will only apply to card issuers with at least one million open card accounts so smaller issuers will be exempt.
It will go into effect 60 days after publication in the Federal Register.
Featured
> New CFPB rule caps banks’ credit card late fees at $8
By cutting late fees to $8 from an average of around $32, more than 45 million card users would save an average of $220 annually, the CFPB said in a release.
From Fintech Nexus
> LatAm neobanks surpass breakeven, signal maturing market
By David Feliba
Latam neobanks have weathered the capital crisis and reported a strong year of profitability while still growing their customer base.
Podcast
Mark Gould, Chief Payments Executive for Federal Reserve Financial Services on the rollout of FedNow
When FedNow launched last July there was a lot of pressure on the Fed to get this move into instant payments right. The head…
Webinar
How Banks Are Approaching Innovative Consumer Lending In 2024 – Europe
Mar 19, 2pm GMT
The consumer credit space is moving at a breakneck pace, with consumers continuing to demand more clarity and control over…
Also Making News
- USA: No Plaid IPO for 2024
Plaid, the startup plumbing much of the fintech economy, has no IPO plans for 2024, CEO Zach Perret told Axios’ Lucinda Shen onstage at Fintech Meetup.
- Global: Frictionless isn’t always better when it comes to banking
Words like seamless and frictionless seem to have become permanent fixtures of product releases and announcements pertaining to financial products. But most UX designers and design ethics practitioners will say that friction is like any other tool in the designer’s toolkit.
To sponsor our newsletters and reach 275,000 fintech enthusiasts with your message, contact us here.
.pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { font-size: 20px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { font-weight: bold !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { color: #000000 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-avatar img { border-style: none !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-avatar img { border-radius: 5% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { font-size: 24px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { font-weight: bold !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { color: #000000 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-description { font-style: none !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-description { text-align: left !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a span { font-size: 20px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a span { font-weight: normal !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta { text-align: left !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a { color: #ffffff !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a:hover { color: #ffffff !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-user_url-profile-data { color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data span, .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data i { font-size: 16px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { border-radius: 50% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { text-align: center !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data span, .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data i { font-size: 16px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data { border-radius: 50% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-recent-posts-title { border-bottom-style: dotted !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-multiple-authors-boxes-li { border-style: solid !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-multiple-authors-boxes-li { color: #3c434a !important; }
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.fintechnexus.com/fintech-nexus-newsletter-march-5-2024-cfpb-makes-good-on-promise-to-cap-credit-card-late-fees/
- :has
- :is
- 000
- 1
- 19
- 2010
- 2024
- 45
- 5
- 60
- a
- About
- Accounts
- After
- All
- always
- American
- an
- and
- Announcements
- Annually
- any
- Apply
- approaching
- ARE
- around
- At
- attack
- author
- avatar
- average
- Banks
- base
- BE
- become
- been
- behind
- Better
- Big
- billions
- bold
- boost
- borrowers
- Bottom
- Breakeven
- but
- by
- cap
- capital
- caps
- card
- Center
- ceo
- CFPB
- chairman
- charged
- chief
- Chopra
- clarity
- CNBC
- Co-founder
- code
- color
- comes
- Companies
- company
- consumer
- Consumers
- contact
- continues
- continuing
- control
- creator
- credit
- credit card
- crisis
- customer
- cutting
- David
- Days
- decade
- Demand
- Design
- designers
- digital
- Digital media
- Director
- dollars
- economy
- effect
- ends
- enthusiasts
- Era
- ethics
- executive
- exempt
- exploiting
- Fed
- Federal
- federal reserve
- fednow
- Fees
- financial
- financial products
- financial services
- fintech
- First
- focused
- For
- friction
- frictionless
- from
- get
- giants
- Go
- good
- Growing
- had
- harvest
- Have
- he
- hiding
- Hike
- hover
- http
- HTTPS
- i
- implementing
- in
- incident
- inflation
- innovative
- instant
- instant payments
- Interview
- into
- IPO
- issuers
- IT
- ITS
- July
- kinds
- largest
- Last
- Late
- launched
- least
- left
- lending
- like
- lines
- loophole
- Lot
- MAKES
- Making
- March
- mark
- max-width
- Media
- Meetup
- message
- million
- more
- morning
- most
- move
- moving
- much
- Neobanks
- New
- Newsletter
- Newsletters
- nexus
- no
- None
- normal
- now
- of
- on
- ONE
- only
- onstage
- open
- Other
- our
- over
- own
- Pace
- payments
- per
- permanent
- pertaining
- Peter
- PLAID
- plans
- plato
- Plato Data Intelligence
- PlatoData
- Plumbing
- pressure
- Product
- Products
- profitability
- promise
- Publication
- reach
- register
- release
- Releases
- Reported
- Reserve
- right
- rohit chopra
- rollout
- Rule
- Said
- Save
- say
- seamless
- seem
- Series
- Services
- Signal
- since
- smaller
- So
- solid
- Space
- span
- sponsor
- startup
- Still
- strong
- surpass
- targeting
- than
- that
- The
- The Capital
- the Fed
- their
- There.
- they
- this
- time
- to
- today’s
- told
- tool
- toolkit
- us
- users
- ux
- ux designers
- was
- What
- when
- while
- WHO
- will
- with
- world’s
- would
- writing
- year
- Your
- zach
- zephyrnet