cancel
Showing results for 
Search instead for 
Did you mean: 

Judge blocks CFPB's CC late fee cap

tag
SouthJamaica
Mega Contributor

Re: Judge blocks CFPB's CC late fee cap


@keekers wrote:


@CreditCuriosity wrote:

@SouthJamaica I dont mind removing it and just did.  Please remove your replies as well and will get this thread removed or closed as can discuss it on other mediums than this forum.  Thanks


 

You are asking for this thread to be closed why exactly?


We just need to avoid discussing politics, because the site does not permit political discussion. But I don't see why we can't discuss the ruling from other perspectives.

 

It is noteworthy that the judge was not evaluating the $8 rule in itself; he was ruling based on a question as to whether the CFPB is funded in a lawful manner, or in a way that violates the Constitution.


Total revolving limits 710800 (590300 reporting) FICO 8: EQ 712 TU 710 EX 710

Message 11 of 15
keekers
Established Contributor

Re: Judge blocks CFPB's CC late fee cap

Interestingly Cap One is the only major issuer that had made changes to comply with the new law in advance of the implementation deadline. $9B annually in late fees is way more than I figured.  If the late fee cap is upheld I can see some reductions in the rewards benefits to offset the loss in revenue to the banks; there's no way they are going to give up that large of a revenue stream and the interest rates are already gaudy in most cases and annual fee increases can't make up that much in lost revenue so I'm not sure what other levers they may have to pull.  The figure in 2022 was something like $67.9B in rewards payouts among the six largest issuers.



Message 12 of 15
Zoostation1
Valued Contributor

Re: Judge blocks CFPB's CC late fee cap

@keekers  While I could potentially see a modest rewards reduction, I would expect to see more banks cross the 30% APR threshold before any significant changes to rewards structures. I'd also expect more lenders to have other charges like paper statement fees (ughh@ my dad for still gettting paper statements on a majority of his accounts!), and maybe even tightening up a bit on sub prime lending approvals and/or limits.  I'm not really sure how that would affect me if it were to be the case though given that I'm still a rebuilder but have finally gotten to a point where I have a few priome cards and a couple cards with fairly strong CLs.

Rebuild Started Nov 2021
June 2022 FICO 8:
June 2022 FICO 9:
May 2024 FICO 8:
May 2024 FICO 9:
Message 13 of 15
elboullee
Regular Contributor

Re: Judge blocks CFPB's CC late fee cap


@SouthJamaica wrote:

It is noteworthy that the judge was not evaluating the $8 rule in itself; he was ruling based on a question as to whether the CFPB is funded in a lawful manner, or in a way that violates the Constitution.


That's not what Mark T. Pittman was doing.

 

Agree or disagree with the policy, anyone curious why the CC companies via the CoC filed this in the Northern Disctrict of Texas?

 

Message 14 of 15
SouthJamaica
Mega Contributor

Re: Judge blocks CFPB's CC late fee cap

Well the Supreme Court has upheld the CFPB's funding.

https://www.nytimes.com/2024/05/16/us/politics/supreme-court-cfpb.html?unlocked_article_code=1.sU0.m...


Total revolving limits 710800 (590300 reporting) FICO 8: EQ 712 TU 710 EX 710

Message 15 of 15
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.