Credit card fees will be slashed as part of a new rules brought in by the Joe Biden administration.

According to a release issued by the White House on Tuesday morning, the Consumer Financial Protection Bureau (CFPB) has finalized a rule that will cut the typical credit card late fee from the current average of $32 to $8.

The new rule closes a loophole in a federal law called the CARD Act, that permits major credit card issuers to charge increasing fees if individuals are late in paying off their debt.

The release reads: "President Biden is committed to making sure corporations are held accountable when they try to rip off Americans, including when they break the law while keeping prices high."

President Biden seeks to cut costs and charges for consumers as several polls have shown that Americans have been dissatisfied with the current state of the economy.

An NBC News poll, conducted between January 26 and 30, of 1,000 registered gave Trump a 22-point advantage over the president on the question of which candidate would do a better job handling the economy—55 percent to 33.

A CBS News/YouGov poll of 2,159 adults, conducted between February 28 and March 1, showed that 68 percent thought, "looking back," that the economy was good under Trump, while 38 percent thought it was good currently.

According to a February 2024 report from the CPFB, major credit card companies charged over $105 billion in interest in 2022. This was the primary cost of credit cards to consumers

According to the White House, the late fee changes will save credit card users "$10 billion a year, or an average savings of $220 per year for the more than 45 million people who are charged these late fees annually."

The CARD Act, first introduced in 2010, banned credit card companies from charging excessive penalty fees by. A first credit card late fee was capped at $25 under the act, and $35 for subsequent late payments. Fees were also tied to inflation.

"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," CFPB Director Rohit Chopra said in a statement.


https://www.newsweek.com/joe-biden-c...-house-1875964

Imagine being hit with a late fee

So they will just either offset that by raising the rate more of cancelling / lowing the limit, which will actually hurt those in a bad financial situation even more than the $24 that they "saved".

Government interference always has worse, "unexpected" consequences.

I would prefer the interest rates be lower.

I just paid off 19 years of credit card debt!!! Now to cut my ideas of spending down so I don’t rack it up again.

19years what the ****???

That is cuckold behavior.

This is why you are not in the family trust.

https://www.propublica.org/article/b...k-industry-825

With Sen. Joe Biden joining the Democratic ticket, there's renewed scrutiny of Biden's connections to the credit card industry. Biden has been particularly cozy with MBNA, a financial services company from Delaware, and now a subsidiary of Bank of America.

Over the past 20 years, MBNA has been Biden's single largest contributor. And as the New York Times and Wall Street Journal note, Biden's son Hunter was hired out of law school by MBNA and later worked as a lobbyist for the company.

LOL@bold

The Times also details just how helpful Biden has been to MBNA and the credit card industry. The senator was a key supporter of an industry-favorite bill – the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" – that actually made it harder for consumers to get protection under bankruptcy.

[Biden] was one of five Democrats in March 2005 who voted against a proposal to require credit card companies to provide more effective warnings to consumers about the consequences of paying only the minimum amount due each month.

Mr. Biden also went against Mr. Obama to help defeat amendments aimed at strengthening protections for people forced into bankruptcy who have large medical debts or are in the military.

If only there was a way to completely avoid ever paying a LATE fee… Hmmm…

Meanwhile, does Biden really think it's a good idea to remind everyone that consumer debt has exploded since he took office?
(From $4.15 Trillion to $4.89 Trillion for consumer debt, and $0.77 Trillion to $1.13 Trillion just for credit card debt).
https://www.newyorkfed.org/microeconomics/hhdc

I have literally no idea what my late fee is

If you ever incur paying it you're a retard

Thanks for covering that rack of white claw, Jack!

Wtf is a late fee?

Wait until March 11th when the Bank Term Funding Program (BTFP) expires and banks all around the country start defaulting because of all the loans they handed out without having them backed up with actual real money. Look it up. This post will be ignored and then you'll start to see banks failing come next week all over the news. It's highly advised to not have a single bank account with a balance over 250k. (Super Ded fkn Srs)

I wish he'd focus any small energy he has on helping the middle class people and creating better opportunities for middle and upper class families. Those are the ones who bring money to the US, generate new money and create jobs anyway.


This late fee for credit card stuff is aimed to help the worst off in society.

They need help but it's not by reducing a damn CC fee. Fix society in other ways and they'll cease needing help with late fees on a fkng credit card. Misguided effort and time spent.

Credit card debt piled up the minute I became a parent. I always paid off my balance before.

I was a stay-at-home Mom for 4 years so that’s when it accumulated the most.

I responsibility put myself on a payment plan and paid if $22,000 worth of credit card debt with a lower interest home loan.

I’m the sole heir to my parents’ trust but my aunt, uncle and if they die sone person appointed by the estate attorney will review my other income sources to determine if I need the trust money for food or shelter.

It’s beyond BS as why do they care about how $250 K is handled after they die?

My husband just said that is evil and they must he pissed off about something, as this was done before my aunt threatened to put me in prison for bringing my Mom home from the nursing home.

If the expiration of the BTFP causes any problems they will just extend it

What kind of low life carries credit card debt?

According to the Federal Reserve Bank of New York, total household debt in the US has risen more than 24% since before the pandemic in 2019 and now sits at $17.5 trillion.

According to a Fortune calculation using data from the Federal Reserve Bank of New York in Q2 of 2023, the average credit card balance was $5,733 per cardholder, while the average for those who do not pay off their balance every month is much higher. According to a Bankrate survey in November, only 49% of Americans carry a credit card balance month-to-month.

Americans are also struggling to pay their credit card bills on time more than other types of debt.


https://www.businessinsider.com/cred...landing-2024-2

Just set the fkn things to autopay…boom, no more late fee. Who pays a late fee in this day and age. Pay the fkn month off and u don't pay interest…yet again Biden rewards bad behavior

It’s actually just going to hurt those with bad habits even more because rates will go up. Who cares about a late fee if you have 30% interest in whatever you were late to pay

its what Ibby pays when his shag goes over the time limit

It’s a legal nonsense, it doesn’t exist

In every country that inherited its contract law from the UK, “penalties” in contracts are void.

All they can charge you is a genuine pre-estimate of liquidated damages (I.e what direct costs it actually imposes) which in most cases would be some rate of (non-punitive) interest

The problem is by definition, the people who incur these fees are too poor to fight them legally.

But from a legal standpoint most of these junk fees are exactly that.

We don't care We don't care

When you have kids your costs skyrocket, especially with a nanny and then if you put them in private school at $25K a year.

Credit cards were mostly for buying dolls, doing activities with her and.toys. She probably had every Build a Bear, Barbie and American Girl doll. We had season tickets for every amusement park. Then the years I didn't work the credit card balance was much higher, even though I wore clothes that were 10 years old.

So to escape when things were really bad with the husband I started going to Florida often with the justification that it was cheaper than getting my own place, which was true, but still, it was out of my budget.

So I set aside $500 a month to pay off the credit card debt 3-4 years ago and stopped going to Florida. Any other trips I went on were financed by eBay sales. I sold $4,000 on eBay last year alone! And I got rid of wedding china and home decor that has been sitting around for 30 years so the house isn't cluttered.

It's like a huge set of bricks off my back.