The CFPB continues its assault on all types of junk charges charged by banks. This time they’re concentrating on bank card late charges.
In a long-anticipated transfer, this morning the CFPB unveiled a brand new rule that will cap bank card late charges at $8 per incident.
The common proper now could be round $32, so this may save the 45 million shoppers who’re charged late charges $220 per 12 months.
Here’s what CFPB Director Rohit Chopra needed to say about implementing this new rule:
“For over a decade, bank card giants have been exploiting a loophole to reap billions of {dollars} in junk charges from American shoppers. Immediately’s rule ends the period of huge bank card corporations hiding behind the excuse of inflation once they hike charges on debtors and increase their very own backside traces.”
The rule will solely apply to card issuers with at the least a million open card accounts so smaller issuers can be exempt.
It can go into impact 60 days after publication within the Federal Register.
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> New CFPB rule caps banks’ bank card late charges at $8
By reducing late charges to $8 from a mean of round $32, greater than 45 million card customers would save a mean of $220 yearly, the CFPB stated in a launch.
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