Biden Rule Caps Credit Card Late Fees, Draws Banking Industry Backlash
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Banking industry slams new Biden rule capping credit card late fees at $8, saying it will reduce competition, raise costs, cause more late payments, and limit credit access.
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CFPB estimates rule will save consumers $10 billion in late fees annually by reducing typical $32 fee to $8 cap.
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Financial groups say rule will force card issuers to reduce credit lines, tighten standards, and raise interest rates.
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Sen. Tim Scott plans to use Congressional Review Act to fight implementation of "misguided" rule.
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Consumer Bankers Association says rule benefits a minority of frequent late payers by increasing costs for the 74% who pay on time.