Biden Administration announces $ 8 Cape on Credit Card late fees
The new rules of the Biden Administration will impose a late credit card fee on $ 8. This is the latest White House effort that it is called “junk fee”.
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Consumer Financial Protection Bureau is a potentially sophisticated government agency on President Donald Trump’s cut block.
On February 1, not only Trump Rohit Chopra headed the independent agency, but at the end of the weekend, the newly installed office of the Office of Management and Budget, Russell Weit, directed the CFPB to stop working. The agency was ordered to stop working on the proposed rules, suspend effective dates on any rules which were finalized but not yet implemented, stop the investigative work and launch no new investigation and supervision. And close the exams.
CFPB’s homepage “404 Error: Page was not found.”
If some expected, CFPB is the axis, Watch Dog says that consumers can pay a lot of prices. And not just in cash.
“Without strict surveillance and implementation of consumer reports digital marketplace policy, consumers are at risk of violating the privacy of hidden methods, hidden fees and data,” said Delisia Hand, senior director of the digital marketplace policy.
What does CFPB do?
CFPB, which is actually a mental maker of Senator Elizabeth Warren (D-Masassachus), was created to protect consumers after the great financial crisis of 2007-2008 so that markets for consumer financial products Are transparent, fair and competitive, ” The agency says.
In more than a decade, CFPB exists, the agency list is In his achievements For Americans .5 17.5 billion wins, imposing a $ 4 billion civilian penalty on companies and individuals violating this law, providing answers to their financial questions to 50.1 million users of their website, and On their behalf, companies approve 4 million consumer complaints.
In the last two years, the agency has also fought against the so -called waste fees, including restricting over draft fees and credit card late fees. It also finalized the rules for removing medical debt from credit reports. The tricks can now be about an indefinite period.
Why do people want to close CFPB?
The CFPB has faced opposition from its inception, various Congress members have decided to have the agency’s structure, which they say allows it to run “without basic surveillance and accountability”. Is According to a statement from the Financial Services Committee In 2013.
The CFPB is unique in federal agencies that its financing comes directly from the Federal Reserve based on the request of the Bureau’s Director. The Congress allocates annual funds for almost all other federal agencies.
The CFPB director “has little accountability for the administration, and is less for the Congress. The committee said his budget is safe.
The current funding of this agency is $ 711.6 million “excessive”, when he announced the frozen of the CFPB. “This spigot, which has long played a vital role in the CFPB’s unmanageable ability, is now being closed.”
Banking and financial groups have also accused the agency of putting politics on people.
The Consumer Bankers Association said, “In countless examples, the CFPB regularly put pressure on – or ignored it – to advance the clear political goals of its legal authority.” “Using poor data and facts to support his rule, he failed to consider the real impact of his rules on users.”
As a result, “millions of users can be deprived of access to financial tools and credit.
For example, the purpose of the cap on late credit card fees is to provide support to consumers, some experts have warned.
“The fact (late fees) will also increase the possibility that the bank collects other types of fees to meet the lost revenue,” said Matt Skills, chief credit analyst Matt Skills, chief credit analyst Matt Skils, chief credit analyst of the Financial Product Landing Tree. “
What happens to CFPB now?
For now, the agency is in Lumbo, but the Democrats are fighting to maintain it. He says the votes do not have the authority to abolish the agency that was created by the Congress and signed the law by President Barack Obama.
“CFPB is protected by law and we will fight to make sure they continue to fight for consumers,” said Sen Chris Van Hallon (Di Maryland). X on.
Without CFPB, financial institutions and banks can benefit from consumers, pay them more prices and sell their data, the hands said.
He said, “Consumers face a growing complex financial market under AI, Big Tech, and new digital products, which has made CFPB work more important than ever. “”
Even if Democrats can save CFPB, it cannot be the same agency as it has happened in the last four years. Financial and banking groups are emphasizing changes.
He said that in many cases where CFPB issued policies without consulting the public, or overcoming their powers by Congress – especially in cases where consumers lose more cost for credit. Or stand to pay. CFPB can almost immediately cut hundreds of pages of unnecessary regulations.
Madura Lee is a USA Today is a money, markets and personal finance reporter. You can arrive at this mjlee@usatoday.com and subscribe to our free Daily Money Newsletter for personal finance tips and business news from every Monday to Friday morning.
