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Miss a credit card payment? Federal regulators want to put new limits on late fees
NPR ^ | 02/01/2023 | Joe Hernandez

Posted on 02/05/2023 11:52:50 AM PST by L.A.Justice

The Consumer Financial Protection Bureau is moving ahead with a plan to place new limits on credit card late fees that it says will save consumers money and prohibit companies from charging excessive penalties. But banking groups say the proposal would result in higher costs for consumers.

The proposal comes less than a year after the bureau found that credit card companies in 2020 charged $12 billion in late fees, which have become a ballooning revenue source for lenders.

(Excerpt) Read more at npr.org ...


TOPICS: Society
KEYWORDS: creditcards; economy
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To: L.A.Justice

If the federal government is so interested in regulating and controlling everything (for the good of the people, mind you!) then they should require all credit card holders to attend and pass a course on consumer financial management and budgeting.

They should also require all school children to get the same training. Too many people sink themselves into unmanageable credit card debt out of ignorance and naivety.

Ultimately it is the consumers’ own fault, not the banks’ fault, they are paying too much in fees.

If you must regulate, then regulate some individual responsibility.

This may be a different take on things but sometimes you need to protect the people from themselves first.


21 posted on 02/05/2023 12:27:35 PM PST by clashfan (Whom shall I fear?)
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To: L.A.Justice

If the federal government is so interested in regulating and controlling everything (for the good of the people, mind you!) then they should require all credit card holders to attend and pass a course on consumer financial management and budgeting.

They should also require all school children to get the same training. Too many people sink themselves into unmanageable credit card debt out of ignorance and naivety.

Ultimately it is the consumers’ own fault, not the banks’ fault, they are paying too much in fees.

If you must regulate, then regulate some individual responsibility.

This may be a different take on things but sometimes you need to protect the people from themselves first.


22 posted on 02/05/2023 12:27:35 PM PST by clashfan (Whom shall I fear?)
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To: SaxxonWoods

You use your credit card the right way. You probably have a good credit score.

So many people get into trouble with credit cards. Then, they claim they’re poor, no matter how high their income is. They cannot control their spending.


23 posted on 02/05/2023 12:39:00 PM PST by Tired of Taxes
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To: L.A.Justice

“But banking groups say the proposal would result in higher costs for consumers.”

What are they going to do? Start charging for the card to have one? Start charging the card holder transaction fees? Start overcharging vendors who accept them? I can’t see a negative in that at all, because fewer will want them, accept them, or use them.

Which is a good thing...


24 posted on 02/05/2023 12:39:37 PM PST by Openurmind (The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
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To: SaxxonWoods

“or the system fails”

Let it... It would be one of the best things to happen to this country.


25 posted on 02/05/2023 12:41:59 PM PST by Openurmind (The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
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To: SaxxonWoods

I go for credit cards only and pay the full amount each month. That way I get all the benefits and pay no interest. Also my cards keep close watch on the charges to catch fraudulent ones. Funny how alert and effective they can be when they’re on the hook for it.


26 posted on 02/05/2023 12:45:34 PM PST by libstripper
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To: L.A.Justice

Crapola...I am missing out on all these benefits, since I pay my credit card bill in full every month. I only charge on credit card which I can pay in full every month.


27 posted on 02/05/2023 12:48:42 PM PST by entropy12 (Food is most popular anxiety drug, exercise is the least popular.)
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To: L.A.Justice
I do understand that credit card companies have make money somehow...

If there’s any industry I’m worried about going broke it’s not credit card companies.

28 posted on 02/05/2023 12:49:07 PM PST by GaryCrow
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To: L.A.Justice
I do understand that credit card companies have make money somehow...

If there’s any industry I’m worried about going broke it’s not credit card companies.

29 posted on 02/05/2023 12:50:29 PM PST by GaryCrow
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To: L.A.Justice

I understand that credit card holders who pay the minimum due before the due date don’t pay late fees.

Funny how it works that way.


30 posted on 02/05/2023 12:53:32 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: PGR88
would anyone in the GOP dare to suggest eliminating this bloated, meddling, Fed.gov central-planning bureau? No, I didn't think so.

Of course not. Look at the comments on this thread. The American people are soft, weak, and addicted to Big Government.

31 posted on 02/05/2023 12:55:24 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: BudgieRamone
I’ll be a dead beat

LOL! You're not a deadbeat, and Synchrony Bank made money on that purchase you made. The bank gets a fee paid to them by the merchant every time you buy something. That's why they want you to use the card.

32 posted on 02/05/2023 12:59:07 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: BudgieRamone

I was using my card for everything but they were not making any money on me so they told me that I did not appear to be able to pay my card.


33 posted on 02/05/2023 1:13:42 PM PST by mountainlion (Live well those that did not make it back.)
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To: pierrem15

Yes. They already get a 3% cut of every sale plus 20-40% interest on balances. Time to reign them in.


34 posted on 02/05/2023 1:14:02 PM PST by Homer1
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To: NorthMountain
The bank gets a fee paid to them by the merchant every time you buy something. That's why they want you to use the card.

I use a credit card for my business. Any suppliers that accept a card and do not charge me the processing fee get paid that way. It's very useful and I pay the card in full every month (obviously). Plus I got over $1k cash back from Capital One last year.

That said, 10 years ago all of my vendors took cards. Over the last few years, one at a time, they are charging 3% to let me pay with a card. The card fees for them turn into mega bucks. Those vendors I pay ACH. That 3% represents a substantial increase in my cost I am not going to pay. I imagine the majority of the suppliers I use will be passing on that processing charge eventually. But....I'm enjoying the 1.5% cash back I'm getting now. Pays for my wife's trip to FL to vist her friends.

35 posted on 02/05/2023 1:20:52 PM PST by ChildOfThe60s ( If you can remember the 60s.....you weren't really there..)
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To: L.A.Justice

Before he was POTATUS, before he was VP he was known as the Senator from MBMA. The credit card companies can and will get away with whatever they want on joementia’s watch.


36 posted on 02/05/2023 1:43:04 PM PST by 100%FEDUP
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To: PAR35
I hate to pay late fees. So I almost always pay on time. But if you pay regularly, Discover will (if you ask nice) forgive one a year.

My bank (WF) gives one extra day to deposit funds to avoid an overdraft charge. Never needed it, but it's there.

37 posted on 02/05/2023 1:43:59 PM PST by JPG (MAGA)
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To: dfwgator

White people. Those banks will punish white people.


38 posted on 02/05/2023 1:47:04 PM PST by dforest (Joy Behar is a big mouth cow.)
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To: HamiltonJay

Have you seen the interest rates the credit card companies charge! Loan sharks offer better rates!


39 posted on 02/05/2023 1:48:00 PM PST by minnesota_bound (Need more money to buy everything now)
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To: dforest

You obviously never saw “White Like Me”

https://youtu.be/l_LeJfn_qW0?t=213


40 posted on 02/05/2023 1:48:42 PM PST by dfwgator (Endut! Hoch Hech!)
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