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15 May, 2024

Credit Card Companies Get License To Keep Price Gouging Late Fees

icon CFPB,Credit Card Late Fee Cap,price gouging
How Did Credit Card Companies Get License To Keep Price Gouging? Follow the money!

Trump appointed judge halts Biden plan to lower credit card late fees to $8

The new regulations that were proposed by the Consumer Financial Protection Bureau would have set a ceiling of $8 for most credit card late fees... The rule would have brought the average credit card late fee down from $32. The bureau estimates banks bring in roughly $14 billion in credit card late fees a year." - ABC 7

  • Do banks really make over $14 billion every year in late fees?
  • Do banking CEOs make $7 million every year?
  • How much do banks spend on lobbying Republicans so they can keep price gouging?
  • What is the role of Trump appointed judges in allowing the price gouging to continue?

Follow the money behind the banks' price gouging scheme with this follow-the-money map.

Follow the money

Follow the money to see how credit card companies bought a license to keep price gouging

Win for big banks and credit card companies

Judge Mark Pittman a federal judge in Texas appointed by Trump "temporarily halted a plan by the Biden administration to lower late fees on credit cards to $8 ... Credit card late fees currently average $32, which is four times as much.

The injunction issued by “is a win for the big banks and major credit card companies, which collect billions in revenue each year in late fees,” the story says. Trump filled the Texas federal courts with rightwing extremists." - Handbill

Judge shopping

In Texas, federal judicial districts are arranged so plaintiffs can choose their judge. The controversial practice is known as “judge shopping.” Consequently, conservatives flock to these Texas judges to get rulings against the entire nation. Pittman was picked for this case by the Chamber of Commerce, which sued on behalf of the banks and credit card companies." - Handbill

Pittman also struck down Biden’s student loan forgiveness program, and ruled Texas teenagers can carry concealed handguns.

Follow the money to see how credit card companies bought a license to keep price gouging

Bankers sue to keep price gouging

"Financial firms have been scrambling to thwart the regulations, which could have hit the revenue at banks including JPMorgan Chase & Co... The CFPB rule would have forced companies to limit late payment surcharges to $8 in most cases. Some companies now charge $30 or more.

The U.S. Chamber of Commerce, American Bankers Association, Consumer Bankers Association and three local Texas industry groups sued to block the rule. The restrictions could shave off more than 70%, or around $10 billion, of credit-card lenders’ annual late fee revenue, according to one Bloomberg Intelligence calculation." - Bloomberg Law

Republicans shower tax cuts on their rich donors

GOP: Party of the rich, for the rich by the rich

"Regardless of how long Pittman’s pause stays in place, it is a win for critics who are eying November’s US election. If Trump were elected again, his administration would almost certainly reverse course and could halt the plan altogether. Even if the Supreme Court rules in favor of the CFPB and determines its funding is constitutional, the late fee rule also faces long odds in Pittman’s courtroom, according to Alan Kaplinsky, senior counsel at Ballard Spahr LLP." - Bloomberg Law

TakeAway: Fed up of junk fees? Vote for President Biden to fix the rigged system by which banks fleece you with late fees.

DISCLAIMER: ALTHOUGH THE DATA FOUND IN THIS BLOG AND INFOGRAPHIC HAS BEEN PRODUCED AND PROCESSED FROM SOURCES BELIEVED TO BE RELIABLE, NO WARRANTY EXPRESSED OR IMPLIED CAN BE MADE REGARDING THE ACCURACY, COMPLETENESS, LEGALITY OR RELIABILITY OF ANY SUCH INFORMATION. THIS DISCLAIMER APPLIES TO ANY USES OF THE INFORMATION WHETHER ISOLATED OR AGGREGATE USES THEREOF.

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