Here. Meanwhile, WaPo’s Michelle Singletary calls Trump’s proposal ridiculous and says it’s dead on arrival, saying “If the administration were truly interested in affordability, it would have strengthened the Consumer Financial Protection Bureau rather than kneecapping it.” Not surprisingly, the bank trade organizations say the 10% cap would “reduce credit availability and be devastating for millions of […]
Category Archives: Credit Cards
KEN SWEET and SEUNG MIN KIM have the story for the Associated Press here. The industry argument is that issuers would lose money on higher-risk borrowers at that rate and so would be unwilling to provide credit cards to them. Here’s an excerpt from the article: “A 10% credit card interest cap would save Americans $100 billion […]
Under the 2009 CARD Act, 15 U.S.C. § 1666i-1, credit card issuers are generally prohibited from increasing annual percentage rates, fees, or finance charges. One exception to this rule, though, is for “an increase in a variable annual percentage rate in accordance with a credit card agreement that provides for changes in the rate according […]
In 2008, Puerto Rico adopted a law prohibiting merchants from charging credit card surcharges, while allowing merchants to offer cash discounts. In 2013, the legislature dropped the provision allowing cash discounts, and the Puerto Rico Department of Consumer Affairs has since issued an interpretation that cash discounts are forbidden. A group of merchants sued, arguing […]
This week, the Senate advanced the GENIUS Act, which would establish a (too-weak) regulatory framework for “stablecoins” and other digital currency. Missouri Senator Josh Hawley has proposed an amendment to that bill which would prohibit credit card interest rates above 10%. The banking industry is not pleased.
Four former servicemembers brought a putative class action against Citibank, alleging that it was violating the Servicemembers Civil Relief Act (SCRA) by charging certain interest rates on their credit card balances. Citibank moved to compel arbitration pursuant to the terms of the relevant credit card account agreements, but the district court denied the motion, citing […]
State and federal courts have concurrent jurisdiction over claims brought under the Fair and Accurate Credit Transactions Act (FACTA). But apart from the merits of a FACTA claim, state and federal courts have different requirements for standing. So when a defendant removes a FACTA action from state to federal court, but the claim does not […]
MarketWatch has a story here and the American Banker’s Pola Rocha and Kevin Wack take a deeper dive here (behind paywall but also available on Lexis). Former President Trump describes the cap as temporary. It looks like an attempt to pander to voters with credit card debt. It is also hard to reconcile with the fact […]
The Consumer Financial Protection Bureau analyzed several hundred consumer complaints relating to the administration of credit card rewards programs and identified four recurring themes that resulted in consumers not receiving the rewards they were promised: (1) unexpected promotional conditions, (2) devaluation, (3) redemption problems, and (4) revocation. The report is here.
Bloomberg’s Evan Weinberger has the story, as well as a link to the opinion, here. (Behind a paywall.) Addendum from Allison: The order granting an injunction is here. CNBC’s story is here.