Federal judge halts new U.S. rules limiting credit card late fees

[Synthaholic]

President Biden is trying to help Americans and Big Business is trying to stop him.​

​

Federal judge halts new U.S. rules limiting credit card late fees​

Bank lobbyists challenged the legality of the cap, which was set to take effect next week

A federal judge on Friday temporarily blocked the U.S. government from trying to limit credit card late fees, siding with banks and other business lobbyists that had challenged the policy as unconstitutional.

The cap on penalties was set to take effect next week, but the new ruling from U.S. District Judge Mark T. Pittman, nominated by President Donald Trump in 2019, would block swift financial relief for millions of Americans who have fallen behind on their bills.

Under the contested policy, the Consumer Financial Protection Bureau sought to restrict most penalties for late or missed credit card payments to $8 per month, unless banks could point to data showing that they needed to charge more to make up for their financial losses.

The regulations aimed to close a loophole in federal law that had allowed some companies to charge an average of $32 a month in late fees, enriching an industry that reaped $14 billion in such payments in 2022, the CFPB

“The American people are tired of being played for suckers,” President Biden said in March as the agency unveiled its plans.

But major banks and credit card companies sharply opposed any limits on what they could charge late borrowers. After an unsuccessful, year-long lobbying campaign to deter the CFPB, the U.S. Chamber of Commerce joined bank lobbyists and other groups in suing the government this spring, stressing that fees are essential for “deterring late payments.” found.

 

[Synthaholic]

This is a Trumper judge trying to turn another Biden win into a loss.

 

[Harry Dresden]

This is a Trumper judge trying to turn another Biden win into a loss.

would you say the same if it was an obama judge?....asking for a friend....

 

[Crepitus]

President Biden is trying to help Americans and Big Business is trying to stop him.​

​

Federal judge halts new U.S. rules limiting credit card late fees​

Bank lobbyists challenged the legality of the cap, which was set to take effect next week

A federal judge on Friday temporarily blocked the U.S. government from trying to limit credit card late fees, siding with banks and other business lobbyists that had challenged the policy as unconstitutional.

The cap on penalties was set to take effect next week, but the new ruling from U.S. District Judge Mark T. Pittman, nominated by President Donald Trump in 2019, would block swift financial relief for millions of Americans who have fallen behind on their bills.

Under the contested policy, the Consumer Financial Protection Bureau sought to restrict most penalties for late or missed credit card payments to $8 per month, unless banks could point to data showing that they needed to charge more to make up for their financial losses.

The regulations aimed to close a loophole in federal law that had allowed some companies to charge an average of $32 a month in late fees, enriching an industry that reaped $14 billion in such payments in 2022, the CFPB

“The American people are tired of being played for suckers,” President Biden said in March as the agency unveiled its plans.

But major banks and credit card companies sharply opposed any limits on what they could charge late borrowers. After an unsuccessful, year-long lobbying campaign to deter the CFPB, the U.S. Chamber of Commerce joined bank lobbyists and other groups in suing the government this spring, stressing that fees are essential for “deterring late payments.” found.

I wonder how many expensive "fishing trips" this judge has been on and who paid for them,.

 

[Synthaholic]

would you say the same if it was an obama judge?....asking for a friend....

If it was an Obama judge we would have gotten an explanation for this wrong ruling.

 

[Harry Dresden]

If it was an Obama judge we would have gotten an explanation for this wrong ruling.

all he did was stop it temporarily.....

 

[Meister]

Nobody is responsible for themselves and the contracts they sign any longer.
Big Government will take care of you.

 

[skews13]

Nobody is responsible for themselves and the contracts they sign any longer.
Big Government will take care of you.

Usury used to be a crime. It shows you how normalizing criminal behavior hurts society.

 

[Synthaholic]

Nobody is responsible for themselves and the contracts they sign any longer.
Big Government will take care of you.

When I signed my "contract" with Citibank, it was for 5.6% interest rate. It was supposed to be locked in. And it was for years and years - until the Bush Financial Crash of 2008. For some reason, after that they were able to raise my interest rates and tie them to the FED rate. Like everyone else. Violating our "contract".

Edit: somewhere along the way, Citibank changed my card from a Visa to a MasterCard. Now, I don't give a damn because they are interchangeably accepted, unlike AMEX or Discover. But they never asked me first. They never renegotiated our "contract". They just sent me a MasterCard.

So Meister can cut his bullshit about our corporate contracts.

 

[Meister]

When I signed my "contract" with Citibank, it was for 5.6% interest rate. It was supposed to be locked in. And it was for years and years - until the Bush Financial Crash of 2008. For some reason, after that they were able to raise my interest rates and tie them to the FED rate. Like everyone else. Violating our "contract".

Edit: somewhere along the way, Citibank changed my card from a Visa to a MasterCard. Now, I don't give a damn because they are interchangeably accepted, unlike AMEX or Discover. But they never asked me first. They never renegotiated our "contract". They just sent me a MasterCard.

So Meister can cut his bullshit about our corporate contracts.

Never read the fine print, did you?