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Judge tosses Biden-era credit card late fee rule
Fox News ^ | 4/16/25 | Daniella Genovese

Posted on 04/16/2025 4:53:30 AM PDT by CFW

A federal judge threw out a U.S. Consumer Financial Protection Bureau (CFPB) rule Tuesday that capped all credit card late fees at $8.

U.S. District Judge Mark Pittman of the U.S. District Court for the Northern District of Texas approved a joint motion from a coalition of six business and banking groups, including the American Bankers Association (ABA) and the CFPB to scrap the rule, which was established last year.

The ABA and the U.S. Chamber of Commerce were among the plaintiffs that challenged the rule in U.S. District Court for Northern Texas, arguing the bureau exceeded its statutory authority.

The rule was initially established in March 2024 by the Biden administration. At the time, the CFPB estimated the rule would save families more than $10 billion in late fees annually by reducing the typical late fee that averages $32 to a maximum of $8. That amounts to an average savings of roughly $220 per year for the 45 million people charged late fees.

(Excerpt) Read more at foxbusiness.com ...


TOPICS: Business/Economy; Extended News; Government; Politics/Elections
KEYWORDS: biden; cfpb; creditcardfees; dothecrimedothetime; economy; finance; markpittman; pricecontrols
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To: A_perfect_lady
I dislike credit card companies. They are predatory as all get-out.

When I was in college, the beginning of every year the credit card companies would have tables lining the hallway of the student union, signing kids up for credit cards. Virtually all of these kids had no jobs and had little to no credit history, but the vultures were signing them up in droves anyway. It was no different than drug dealers handing out free samples to hook new buyers.

21 posted on 04/16/2025 5:44:36 AM PDT by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.)
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To: z3n

The $8 fee encourages late payments

The $32 fee discourages late payments


22 posted on 04/16/2025 5:44:37 AM PDT by bert ( (KE. NP. +12) Where is ZORRO when California so desperately needs him?)
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To: Openurmind

No MAGA person should be on the fence here. Trump and Bessent have already made war on Wall Street and fintech because the system has been rigged to give them outsized gains. Cash has almost disappeared, and the system is rigged in favor of anyone who can figure out a way to charge a fee for what used to be a feeless transaction. It’s rigged against all of us. Want to go to college. Instead of paying $5000 tuition room and board like when I went to college, which was affordable to the middle class if it caused some belt tightening, the package is now $80 -100k per year. It’s everywhere and the great reset has to be allowing people to enjoy the fruits of their labor without everyone having his hand in your pocket and robbing you of it legally.


23 posted on 04/16/2025 5:50:56 AM PDT by AndyJackson
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To: joe fonebone

“This company would receive my electronic payment on time, but would not credit it to my account until it was late and then charge me a fee.”

This is a new scam in business across the board no matter what it is. They purposely delay “posting” it towards your account until it is late. Even if they received it days before it is actually late.

Back in the day they went by when it was sent/”postmarked”. An electronic payment time stamp should be exactly the same thing. It should be considered as paid when you send it in good faith, not when they decide to accept that payment. If they want to accept the payment late that is their own fault not the one who sent the payment timely.

And they keep doing this because there are enough stupid people in this country who let them do it. So good for you! MORE NEED TO DO THIS and it will stop.


24 posted on 04/16/2025 5:54:41 AM PDT by Openurmind
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To: AndyJackson

We already live in a cashless society. Many resist, but living cashless is already the norm for many.

Recently I learned that I can save $.10 per gallon on diesel fuel by visiting an Exxon station and buying the fuel from Walmart on my Walmart ap.

My phone and the ap know I am at the Exxon station. I enter the pump number and the Walmart ap takes over the transaction. I purchase the fuel from Walmart at $.10 less than the original value shown on the pump.

Ain’t cashless grand!!??


25 posted on 04/16/2025 5:57:16 AM PDT by bert ( (KE. NP. +12) Where is ZORRO when California so desperately needs him?)
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To: CFW
reducing the typical late fee that averages $32 to a maximum of $8. That amounts to an average savings of roughly $220 per year for the 45 million people charged late fees.

Reducing the fee from $32 to $8 saves you $24 a month.

To save you $220, you'd have to be late about 9 times a year.

Maybe there should be an IQ test before you can get a credit card?

26 posted on 04/16/2025 6:06:00 AM PDT by Toddsterpatriot (TANSTAAFL)
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To: AndyJackson

“No MAGA person should be on the fence here.”

But they are... There is a radical extreme Business Cult. Business can never do anything wrong ever. 100% immunity from ANY scrutiny for being too greedy or shady. Seriously, I have seen this business cult defend Criminal Fraud and Misrepresentation, Price fixing, Extortion, Price Gouging, Sabotage of their own products... Etc.

Anything and everything is fair game to make that ONE extra penny. Worst part is they can’t even tell that there is a true difference between Capitalism and Corporatism and they defend Corporatism as if it was Capitalism. All these Mega financial Corporations are fascist DEMOCRATS and the so called Capitalists on the right are too ignorant to realize they are supporting their own enemy by defending them as part of that anything goes Business Cult.

It is the most ignorant thing I ever saw... Corporatism is NOT Capitalism. Corporatism is anti-capitalist Fascism period. So if you defend Corporatism then you are supporting Fascism.


27 posted on 04/16/2025 6:15:27 AM PDT by Openurmind
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To: bert

Good for you Bert. You saved ten cents a gallon while they in turn broker all your private information you put into that app and put this info up for bid on the open market.

What did you have to share with the app? Real name, address, phone number, email address? Well that along with your whole purchase history is being auctioned off every month to make much more than what they gave you as a discount on your gas.

It is a whole industry of sellers, brokers, auctioneers, and sellers, and resellers. Your info can go through a chain of seven different info handlers. And most of them are in foriegn Nations in systems that can easily be breached and never traced. It is even spread throughout the Dark Web.

You sold your whole private identity and purchase data for ten cents a gallon off a few gallons of gasoline. You saved what? $10 a month? While they sell your info and identity for $20 a month...


28 posted on 04/16/2025 6:34:41 AM PDT by Openurmind
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To: Openurmind

100%


29 posted on 04/16/2025 6:48:19 AM PDT by AndyJackson
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To: Openurmind

Thank you for bringing this up!!!
I cancelled directtv, notified 2 units, boxed up and mailed back the satellite dish, before the due date, and got new service.
They said I was 1 day late notifying the 3rd unit that needed to be notified, so they charged me a whole extra month service.
I never got that bill. It was sent to collections.
My credit rating is well above average, so I filed the paperwork to dispute and let it go. I took a small hit on my credit report.
Same thing happened with liberty mutual insurance.

I don’t even bother disputing anymore.
Screw ‘em


30 posted on 04/16/2025 6:49:37 AM PDT by joe fonebone (And the people said NO!! The end.)
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To: CFW

I thought Trump campaigned on limiting interest on credit cards to 10%. What happened to that?


31 posted on 04/16/2025 6:49:46 AM PDT by TonyM (Score Event)
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To: bert

In fact... Your Credit Card Companies are doing the exact same thing...


32 posted on 04/16/2025 6:51:32 AM PDT by Openurmind
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To: Codeflier

It is a tough issue.

And the free market is the best place to sort it out.


33 posted on 04/16/2025 7:02:40 AM PDT by mewzilla (Swing away, Mr. President, swing away!)
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To: joe fonebone

“I cancelled directtv”

Direct TV are outright thieves... Ironic they wanted the equipment back. Because if you call them for service and happen to already have equipment for some reason, such as a previous tenant left it, they will not let you use that existing equipment. They make you get all new equipment and have it installed by one of their contractors who then just throws the old equipment away. Which of course Direct TV writes off their taxes as a loss. So what you sent them back just went in the garbage anyhow... They DO NOT reuse equipment... Them wanting you to even send the equipment back was a scam of it’s own so that they could pull the secondary scam about notifications...

Legally this is fraud and misrepresentation.


34 posted on 04/16/2025 7:04:38 AM PDT by Openurmind
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To: CFW

Charging $39 late fee is excessive. I don’t care who you are. They will sit on a check for post it late just to hit you with the fee.


35 posted on 04/16/2025 9:14:49 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: joe fonebone

Exactly. The fee is a big revenue generator and they are glad to get the cash. I have a card that charges a $39 fee. I pay the card the day I get my bill, so they can’t play those games with me anymore. It will be payed off later this year and I will never use it again.


36 posted on 04/16/2025 9:17:18 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: JesusIsLord

29% interest and $30 late fees should be illegal. And to those who say it keeps people with bad credit from getting credit. Good!

Preying on the desperate used to be frowned on.


37 posted on 04/16/2025 9:18:57 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: Openurmind

I agree but many here don’t see the difference. Just like many here are war pig neo-cons but call themselves Conservative.


38 posted on 04/16/2025 9:56:49 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: mewzilla

It ain’t a free market when they are collude to do the same thing...


39 posted on 04/16/2025 9:58:27 AM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: CFW

Capping them at $8.00 is ridiculous. On the other hand allowing credit card companies to charge loan-shark rates and penalties is not right either.


40 posted on 04/16/2025 12:58:25 PM PDT by Revel
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