Junk fees are likely to feature in the election this year, so for that reason alone, it would be useful to know what they are. Sometimes they seem to be defined by examples; you can find such a list of examples (as well as a definition that strikes me as underinclusive) here. Because the very […]
Category Archives: Credit Cards
At the House Financial Services Committee April 16, 2024 hearing titled Agency Audit: Reviewing CFPB Financial Reporting & Transparency, Professor Christopher Peterson of Utah, in response to Ranking Member Maxine Waters’ question about why some members of Congress would oppose the CFPB late fee regulation: “I don’t know why you are going to bat for these […]
Policy battles over consumer protection often hinge on what’s better for consumers. That’s because consumer advocates often call for reforms that will aid consumers while the industry, which presumably doesn’t want to oppose proposals based simply on the position that they will cut into industry profits, instead attacks the claim that the reforms will actually […]
Today, the CFPB released a final rule to ban excessive credit card late fees, closing what it refers to as a loophole in a 2010 Rule. The agency predicts typical fees will be reduced from $32 to $8. Update: The Chamber of Commerce has already committed to filing a challenge to the Rule.
A Consumer Financial Protection Bureau report on the first set of results from its newly updated Terms of Credit Card Plans survey reveals that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk. In fact, the 25 largest credit card issuers charged customers […]
The Consumer Financial Protection Bureau this week published two reports that show fees on financial products continue to shock consumers. Overdraft and non-sufficient funds fees still trouble vulnerable households. Excess charges from some college-marketed financial products still don’t appear to be in the best interest of students. In building on its continued research on overdraft […]
CNN reports: “Federal regulators said Tuesday they found that Bank of America harmed customers by double-dipping on fees, withholding credit card rewards and opening fake accounts, all of which are violations of various consumer financial protection laws. As a result, the Consumer Financial Protection Bureau ordered Bank of America to pay more than $100 million […]
That’s essentially what Brad Karp is arguing in a June 1 essay in the American Banker, The CFPB’s late-fee proposal would harm the consumers it seeks to help (behind paywall but available on Lexis). Karp claims costs would go up for “the large majority of credit card customers” because delinquencies would meaningfully rise. As the […]
Shelly Milgram’s employee opened, in Milgram’s name, a credit card with Chase and ran up tens of thousands of dollars in debt–then illegally accessed Milgram’s bank accounts and used them to partially pay off the monthly statements. When the scheme was discovered (with the employee later convicted of fraud), Milgram reported the fraud to Chase […]
Yvonne Mack received a debt collection notice, referring to a US Bank credit card she had held. She was uncertain that the debt amount was accurate, and thus a submitted a request for validation of the debt via certified mail. She received no response. She then received a second debt collection notice. Confused, she went […]