Banks Raise Credit Card Costs Despite Delay on Late Fee Rules

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Banks Raise Credit Card Costs Despite Delay on Late Fee Rules

B
Benzinga

125 Views • Dec 03, 2024

Description

Credit card issuers Synchrony and Bread Financial raised interest rates and introduced new fees in response to a proposed Consumer Financial Protection Bureau rule to cap late fees at $8. Analysts now believe the rule is unlikely to take effect. Rates for some retail cards reached nearly 36%, and Bread introduced monthly paper statement fees. In March, the CFPB proposed capping late fees at $8 to save consumers $10 billion annually, but banks argue it would shift costs to responsible borrowers.