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The CFPB continues its assault on all types of junk charges charged by banks. This time they’re focusing 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’s round $32, so this might save the 45 million shoppers who’re charged late charges $220 per yr.
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. At the moment’s rule ends the period of huge bank card corporations hiding behind the excuse of inflation once they hike charges on debtors and enhance their very own backside strains.”
The rule will solely apply to card issuers with at the very least a million open card accounts so smaller issuers might be exempt.
It is going to 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 median of round $32, greater than 45 million card customers would save a median of $220 yearly, the CFPB stated in a launch.
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