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☆ What exactly goes into closing costs?
▼ + stars: | 2024-05-04 | by ( Samantha Delouya | ) edition.cnn.com time to read: +6 min

But there is an often-overlooked expense when buying a home: closing costs. At the same time, the Biden administration plans to take aim at so-called “junk fees” hidden in closing costs. New York, Delaware and Washington, DC, have the highest average closing costs, according to Bankrate; while Missouri, Indiana and North Dakota have the lowest. Lowering closing costs on your ownThere is one relatively simple way to lower your overall closing costs: shop around. “When you compare those offers, examine not just the rate itself but also the closing costs.

Persons: homebuyers, —, Biden, ” Jeff Ostrowski, , ” Ostrowski, you’re, homebuyers haven’t, Brian Connolly, it’s, “ It’s, ” Connolly, Connolly, ”, Freddie Mac, ” Genaro Villa Organizations: CNN, Consumer Financial, National Association of Realtors, realtors, University of Michigan, NAR, homebuyers Locations: New York , Delaware, Washington, Missouri, Indiana, North Dakota, Bankrate, AnnualCreditReport.com

☆ Medical Debt Shows Up Less Often on Credit Reports
▼ + stars: | 2024-05-03 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Rohit Chopra, the bureau’s director, said in a statement that “further reforms” were needed to scour medical debt from credit histories. The bureau is considering a rule to ban medical debt from consumer credit files. The bureau estimated in a 2022 report that well over half the debt that appeared on credit reports as being in collection was medical debt. People can incur medical bills unexpectedly, and many think that their health insurance will cover the costs. And the consumer bureau previously found that medical collection debt reported to the credit bureaus was “plagued by inaccuracies.”

Persons: —, TransUnion —, Rohit Chopra Organizations: Consumer Financial

☆ Federal Student Aid head Richard Cordray, tasked with FAFSA rollout, to step down
▼ + stars: | 2024-04-26 | by ( Katie Lobosco | ) edition.cnn.com time to read: +7 min

Washington CNN —The head of the Federal Student Aid office, which has faced criticism for the botched rollout of this year’s college financial aid form, will be stepping down. The announcement of Cordray’s departure comes as his office has been under fire for problems with a new version of the Free Application for Federal Student Aid, or FAFSA, released late last year. “If there was a financial aid director, or even a college president, that delayed financial aid on their campus for up to six months, the professional price that would be paid for that would be pretty steep,” Justin Draeger, president of the National Association of Student Financial Aid Administrators, told lawmakers. Cordray’s tenureAs the head of FSA, Cordray oversaw not only the FAFSA but also the entire $1.6 trillion federal student loan system. It also sued Navient, one of the biggest federal student loan servicers, for allegedly processing payments incorrectly.

Persons: Richard Cordray, Cordray, Justin Draeger, Virginia Foxx, Miguel Cardona, Cordray’s, Rich Cordray’s, ” Cardona, “, Rich, Obama, ” Cordray, Pell, Biden, Trump, Massachusetts Sen, Elizabeth Warren —, Navient, “ I’m, ” Warren Organizations: Washington CNN, Federal, Aid, CNN, Department of Education, Federal Student Aid, Education, Workforce, National Association of Student Financial, Republican Rep, Consumer Financial Protection Bureau, Democratic, National College, of Education, Public, Consumer Financial, Massachusetts, Corinthian Colleges Locations: North Carolina, Ohio

The cost of pawn shop loans can be high, but in some situations they can offer financial leeway. How pawnshop loans workThe process of getting a pawnshop loanPawnbrokers assess your items just as they do for customers looking to pawn for a direct sale. About 60% of users of pawn loans, title loans, or payday loans were turned down partially or in full for requested mainstream credit sources, according to the CFPB. Unlike qualifications for personal loans, pawn loans don't require a credit check or information on financial assets. Pawnshop loans can get expensive because they have higher interest rates and fees compared to traditional loans.

Persons: you've, You'd, you'll, They're, you'd, Kate Underwood Kate Underwood Kate Underwood, www.kateunderwoodwriter.com Read Organizations: U.S . Department of, National Pawnbrokers Association, Consumer Financial Protection Bureau, Chevron Locations: Virginia Beach , Virginia, Richmond , Kentucky

☆ Coding boot camp BloomTech and CEO Austen Allred deceived students, US government agency says
▼ + stars: | 2024-04-17 | by ( Rosalie Chan | ) www.businessinsider.com time to read: +1 min

The CFPB issued an order against coding boot camp BloomTech and CEO Austen Allred. The CFPB said BloomTech, formerly known as Lambda School, deceived students. The Consumer Financial Protection Bureau issued an order against coding boot camp BloomTech and its CEO, Austen Allred, on Wednesday. The CFPB said the coding boot camp, previously known as Lambda School, deceived students about the cost of loans and made false claims about graduates' hiring rates. In addition, BloomTech must pay $64,000 and Allred must pay $100,000 in civil penalties, which will go toward a victim relief fund, according to the agency.

Persons: Austen Allred, BloomTech, CFPB, Allred Organizations: Lambda School, Consumer Financial, Business

☆ Department stores face another squeeze. This time, with store credit card revenue
▼ + stars: | 2024-04-10 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +6 min

For fiscal year 2023, credit card revenue totaled $619 million for Macy's and approximately $475 million for Nordstrom . The three companies do not break out how much of total credit card revenue comes from late fees. All of that adds up to dwindling credit card revenue for retailers, who can now expect to see it shrink even further. Target's credit card revenue fell to $667 million last year, down from $734 million in the prior fiscal year. Gap does not disclose credit card revenue, but its Chief Financial Officer, Katrina O'Connell, said on an earnings call that losses from late fees will be "largely offset in 2024 by other levers within our credit card program."

Persons: Robert Nickelsberg, it'll, Jane Hali, Kohl's, David Silverman, Silverman, —, Michael Fiddelke, Macy's, Adrian Mitchell, It's, Nordstrom, Katrina O'Connell Organizations: Getty Images Department, Consumer Financial, Bureau, Associates, Nordstrom, Fitch, TD Bank, Shoppers, Adobe Analytics, Citi, Sam's Locations: New York City

☆ Credit Card Companies Are About to Invent New Fees for Consumers
▼ + stars: | 2024-04-07 | by ( Emily Stewart | ) www.businessinsider.com time to read: +8 min

Some of those annoying fees on your credit card may soon be getting smaller. Banks and credit-card companies are almost certainly trying to figure out where else they squeeze money out of you. The response to the interchange-fee settlement has been a bit more muted: The Electronic Payments Coalition, which represents Visa, Mastercard, and other credit-card companies, said it was OK with the swipe-fees cap. Taken together, it's clear that many companies in the credit-card business would rather not be dealing with this situation. According to the Merchants Payments Coalition, Mastercard is now planning to increase different credit card fees soon, it's "network assessment" fee.

Persons: Banks, Matt Schulz, JPMorgan Chase, Mark Elliot, Doug Kantor, Mark Mason, Rich Fairbank, We've, it's, Ira Rheingold, Amanda Jackson, Emily Stewart Organizations: Consumer Financial, Mastercard, Visa, Bank Policy Institute, Electronic Payments Coalition, UBS, JPMorgan, American Express, National Association of Convenience Stores, Merchants Payments Coalition, Capital, JPMorgan Chase, National Association of Consumer, Companies, Financial Reform, Business

☆ Plan to buy a home in the next year or two? Here are 5 steps to take now to get your finances ready
▼ + stars: | 2024-04-04 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

Mortgage lenders will consider lots of different metrics and circumstances when assessing your creditworthiness. Check your credit reports and credit scoresTwo other factors lenders will consider are your credit history and credit score. Kill the credit card debtA key way to improve your credit score is to reduce your credit card debt. “The minute they pull your credit score, it is going to [reflect] what is on my credit card that day,” MBA’s Seiler said. “Because there are many variables that affect an individual consumer’s credit score, we can’t say a specific number of months,” FICO’s Zeibert said.

Persons: ”, Avi Adler, Sara Zuckerman, Margaret Poe, Poe, you’ll, Eddie Seiler, Joe Zeibert, You’re, ” Adler, MBA’s Seiler, ” FICO’s Zeibert, “, ” Seiler, Zuckerman, Adler, ” Zuckerman Organizations: New, New York CNN, Long & Foster, Consumer Financial, Bureau, Mortgage, Association Locations: New York, annualcreditreport.com, TransUnion

☆ Here are some big money blind spots you need to avoid, advisors say
▼ + stars: | 2024-04-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Here are some of the biggest financial blind spots, according to several certified financial planners on CNBC's Digital Financial Advisor Council. 1. Credit scoresConsumers often don't understand the importance of their credit score, said Kamila Elliott, CFP, co-founder and CEO of Collective Wealth Partners based in Atlanta. The average person with a credit score between 760 and 850 would get a 6.5% interest rate, according to national FICO data as of April 1. The latter's monthly payment would cost $324 more relative to the person with a better credit score — amounting to an extra $116,000 over the life of the loan, according to FICO's loan calculator. "Ten out of 10 people couldn't explain how the tax withholding system works," said Ted Jenkin, CFP, CEO and founder of oXYGen Financial based in Atlanta.

Persons: Kamila Elliott, Wills, Barry Glassman, I'm, Glassman, Elliott, That's, Ted Jenkin, Uncle Sam, Jenkin Organizations: Getty, Digital Financial, CFP, Wealth Partners, Consumer Financial, Bureau, Wealth Services, Westend61, Collective Wealth Partners, Business, Employers, Workers Locations: Atlanta

☆ The No. 1 factor that makes people feel financially secure—and how to achieve it
▼ + stars: | 2024-04-03 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

For many people, credit card debt is standing between them and financial security. And although many people feel that financial security means having little to no debt, achieving that goal is typically easier said than done. 1 factor that makes them feel financially secure, according to CNBC's International Your Money Financial Security Survey conducted by SurveyMonkey. While there are many different kinds of debt, from student loans to mortgages, by far one of the most expensive forms of debt is credit card debt. The majority of Americans wouldn't be able to cover a $1,000 emergency expense with their savings, per Bankrate's 2024 emergency savings report.

Persons: Ted Rossman, wouldn't, Matt Schulz Organizations: Financial Security, SurveyMonkey, Financial, CNBC

☆ Opinion: Conservatives game the system to drag Supreme Court further into culture war
▼ + stars: | 2024-04-01 | by ( Steve Vladeck | ) edition.cnn.com time to read: +8 min

He is the author of the “One First” Supreme Court newsletter. Both cases were filed in federal district courts in which the plaintiffs could literally hand-pick the specific federal judge who would be assigned to hear the dispute. Indeed, the Supreme Court granted emergency relief in both the social media and mifepristone cases. But the Supreme Court is another matter. For once, the Supreme Court is the victim of right-wing litigation behavior, not the culprit.

Persons: Steve Vladeck, Stephen I, Biden, they’ve, Terry Doughty, Donald Trump, Matthew Kacsmaryk, Trump, —, Neil Gorsuch, Gorsuch Organizations: CNN, University of Texas School of Law, Monroe Division, Court, Western, Western District of, Amarillo Division, Northern, Northern District of, Appeals, Fifth, Fifth Circuit, Democratic, Ninth Circuit, Consumer Financial Protection Bureau, Securities, Exchange, Conference, United, Northern District of Texas, Judicial, Federal, FDA Locations: Murthy v . Missouri, Monroe, Western District, Western District of Louisiana, Amarillo, Northern District, Northern District of Texas, Orleans, Texas, Austin, West Coast, United States

☆ ‘I am so scared of them now’: Burned from overspending, some ‘buy now, pay later’ users warn others away
▼ + stars: | 2024-03-30 | by ( J.J. Mccorvey | ) www.cnbc.com time to read: +8 min

But the $6,000 in BNPL loans she'd racked up over roughly two years felt frivolous, she said, especially because they're planning to buy their first home. Many are seeking cover from high credit card interest rates. After trimming her discretionary spending and sticking to home-cooked meals, she said she's been able to whittle down her BNPL debt to about $1,200. Klarna said it had responsible spending limits for its users, whose average outstanding balance is $150, compared to the more than $6,000 for credit card users. Baird, for her part, acknowledged BNPL services can make inflation and high interest rates feel "easier" for those who can keep their shopping impulses under control.

Persons: Tia Whiteside, Whiteside, she'd, Dyson, she's, Marcus, whittle, Ben Lourie, Lourie, aren't, I've, Amy Baird, Baird, Kevin Mahoney, Mahoney, —, Afterpay, Klarna, Sen, Sherrod Brown, Raphael Warnock, John Fetterman, Brown Organizations: LexisNexis, Solutions, University of California, UC Irvine, Singapore Management University, PayPal, Consumer Financial Protection Bureau, Financial, D.C, Sens, NBC News Locations: Greenville , South Carolina, Irvine, Stanford, Dallas, Washington, Ohio

☆ Navy Federal says external review finds ‘non-race factors’ explained mortgage approval disparities
▼ + stars: | 2024-03-23 | by ( Casey Tolan | Rene Marsh | ) edition.cnn.com time to read: +5 min

The nearly 29-percentage-point gap in Navy Federal’s approval rates was the widest of any of the 50 lenders that originated the most mortgage loans in 2022. In addition, an analysis by staff of the Senate Banking Committee, which 10 Democratic senators cited in a letter asking federal regulators to review Navy Federal’s mortgage lending earlier this year, also found racial disparities in Navy Federal’s mortgage approval rates based on the publicly available data. A spokesperson for Navy Federal did not respond to a request for additional details about the analysis. Navy Federal described Adegbile’s analysis as an “external review,” but his law firm, WilmerHale, is also defending Navy Federal in a class-action lawsuit from Black and Latino borrowers who allege the credit union discriminated against them in mortgage applications. “Navy Federal should immediately put out the full investigative report and data analysis so that Navy Federal’s members have an opportunity for themselves to review the findings,” the statement said.

Persons: hadn’t, “, ”, Debo Adegbile, ” Adegbile, WilmerHale, – Ben Crump, Adam Levitt, Hassan Zavareei –, Adegbile Organizations: CNN, Navy Federal Credit Union, Department of Defense, Federal, Consumer Financial, Bureau, Banking Committee, Navy Federal, U.S . Commission, Civil Rights Locations: Black, Navy

☆ Biden administration to forgive $5.8 billion in student debt for nearly 78,000 borrowers
▼ + stars: | 2024-03-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

US President Joe Biden speaks during an event to announce that his Administration has approved $1.2 billion in student debt cancellation for almost 153,000 borrowers at the Julian Dixon Library in Culver City, California, on February 21, 2024. The Biden administration announced Thursday it would forgive $5.8 billion in student debt for 77,700 borrowers through the Public Service Loan Forgiveness program. The Biden administration has so far cleared the education debts of nearly 4 million people, totaling $143.6 billion in relief. The Biden administration has worked to fix those issues. Before Biden's fixes to PSLF, just around 7,000 borrowers had received debt relief through the over 15-year-old program, according to the administration.

Persons: Joe Biden, Julian Dixon, Biden, Education Miguel Cardona, George W, Bush Organizations: Julian Dixon Library, Public, U.S . Department of Education, Education, Finance, Social, Security, Consumer Financial, Bureau Locations: Culver City , California

☆ A major student-loan company is 'impeding' borrowers' debt cancellation and 'mishandling' their monthly bills, Elizabeth Warren says. She wants its CEO to face Congress.
▼ + stars: | 2024-03-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewMassachusetts Sen. Elizabeth Warren has questions for the head of a major student-loan company — and she wants him to answer them in Congress next month. On Monday, Warren sent a letter to Scott Giles, the CEO of federal student-loan servicer MOHELA, inviting him to testify before the Senate banking committee on April 10. MOHELA was the first federal servicer to be punished by the Education Department for failing to fulfill its contractual obligations. "Your testimony will provide you with an opportunity to offer context on MOHELA's role as a student loan servicer at a time of significant transition for the federal student loan program," she added. Warren, along with other Democratic lawmakers, has previously scrutinized MOHELA's handling of student-loan borrowers' accounts.

Persons: —, Massachusetts Sen, Elizabeth Warren, Warren, Scott Giles, servicer MOHELA, MOHELA, servicer, Chuck Schumer, Sen, Bernie Sanders, PSLF, I'm Organizations: Service, Public, Business, Education Department, Democratic, Consumer Financial Protection Bureau Locations: Massachusetts, Nelnet

☆ Closing Costs for Buying a Home Have Risen Along With Rates
▼ + stars: | 2024-03-15 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

A pricey housing market and higher interest rates have made it harder to afford a house, but related expenses known as closing costs also add to the home-buying challenge. Borrowers typically paid about $6,000 for such costs in 2022, up from about $4,900 in 2021. That was on top of a down payment and other costs. The average monthly payment for a 30-year fixed-rate mortgage rose 46 percent, to $2,045 at the end of 2022 from $1,400 a year earlier, the bureau found. The median price of a single-family home in January was $383,500, up 5 percent from a year earlier, the National Association of Realtors reported.

Organizations: Consumer Financial, National Association of Realtors

☆ Over 27,000 student-loan borrowers are getting $4.1 million in payments in the mail after debt relief companies 'lured' them into 'fake loan forgiveness claims,' a federal consumer agency says
▼ + stars: | 2024-03-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewThousands of student-loan borrowers are getting checks in the mail after paying companies accused of scamming them for debt relief services. The Federal Trade Commission on Wednesday announced it would be sending over $4.1 million in refunds to 27,584 borrowers who gave money to South Dakota corporations Mission Hills Federal and Federal Direct Group. According to the press release, the FTC said the companies "lured consumers with fake loan forgiveness claims and pocketed their money." Advertisement"Moreover, because Defendants have failed to apply most or any of consumers' payments to their student loans, many consumers have accrued additional capitalized interest on the balance of their loans," the complaint said. Those with questions about the payments can contact JND Legal Administration — the company overseeing FTC's refunds — at 844-566-0108, or seek information through the FTC's refund information website.

Persons: — Organizations: Service, Federal Trade Commission, Wednesday, Mission Hills Federal, Federal Direct Group, Business, FTC, Court, Central, Central District of, —, Consumer Financial, Education Department Locations: South Dakota, Central District, Central District of California, California, reportfraud.ftc.gov

The title acceptance pilot waives the need for a lender's title insurance policy on some refinance mortgages. The Federal Housing Finance Agency recently rolled out a new pilot program that would lower refinance closing costs for some borrowers. Called the "title acceptance pilot," this program would waive the requirement that conforming loans have a lender's title insurance policy on certain refinance mortgages. Borrowers are required to purchase a lender's title insurance policy, which can be a significant out-of-pocket cost. Pushback from the mortgage industryLeaders from the mortgage and title insurance industries overall weren't pleased with this announcement.

Persons: —, Biden, Fannie Mae, Freddie Mac, homebuyers, Christopher Tyson, Tyson, doesn't Organizations: Service, Federal Housing Finance Agency, Mortgage Bankers Association, Union, Consumer Financial, National Community Stabilization Trust, homebuyers

☆ CFPB Director Rohit Chopra responds to lawsuit against $8 credit card late fee cap
▼ + stars: | 2024-03-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCFPB Director Rohit Chopra responds to lawsuit against $8 credit card late fee capConsumer Financial Protection Bureau Director Rohit Chopra joins 'The Exchange' to discuss the status of the $8 late fee cap for credit cards amid lawsuits, efforts to make mortgage closing costs more affordable, and more.

Persons: Rohit Chopra Organizations: Financial

☆ Wells Fargo has cleared 6 regulatory hurdles since Charlie Scharf took over as CEO in 2019. Here’s how shares reacted to each
▼ + stars: | 2024-03-09 | by ( Morgan Chittum | ) www.cnbc.com time to read: +7 min

Since taking over as CEO of Wells Fargo in 2019, Charlie Scharf has been cleaning up the bank. Wells Fargo stock gained 59% for all of 2021 compared with the KWB's 36% rise. Jan. 5, 2021: During the same year, Wells Fargo announced that an OCC consent order from 2015 had been terminated. Wells Fargo shares plunged nearly 44% in 2020, which were the early days of the Covid pandemic. Wells Fargo bank signs in New Brighton, Minnesota.

Persons: Charlie Scharf, Wells, Morgan Stanley, they've, Scott Siefers, Piper Sandler, we're, Scharf, Wells Fargo, Jeff Marks, Marks, Jan, Jim Cramer's, Jim Cramer, Jim, Michael Siluk Organizations: Management, CNBC, Federal Reserve, Currency, JPMorgan Chase, Bank of America, KBW, Club, OCC, Wells, Financial Protection Bureau, Silicon Valley Bank, Wells Fargo, UCG, Getty Locations: Wells Fargo, Wells, Silicon, New Brighton , Minnesota

☆ Biden touts 'fixed' student loan forgiveness programs in State of the Union. Here's what he meant
▼ + stars: | 2024-03-08 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Income-driven repayment plansIncome-driven repayment plans, which date to 1994, set borrowers' monthly payments based on a share of their discretionary income. "The loan servicers weren't keeping track of the number of qualifying payments," Kantrowitz said in a previous CNBC interview. watch nowThe Biden administration has been evaluating millions of borrowers' loan accounts to see if they should have had their debt forgiven. Most people with federal student loans qualify for income-driven repayment plans, and can review the options and apply at Studentaid.gov. Public Service Loan ForgivenessNavigating the Public Service Loan Forgiveness program has been famously difficult.

Persons: Joe Biden, Shawn Thew, Mark Kantrowitz, Kantrowitz, Biden, George W, Bush Organizations: Chamber, Afp, Getty, CNBC, Education Department, Valuable Education, Public, Consumer Financial Locations: Washington ,

Biden unveiled a plan that includes tax credits and down payment assistance to improve housing affordability. Eligible homebuyers would get this tax credit for two years, meaning you could get a total of $10,000 in tax credits for buying a house. Down payment assistanceAnother piece of Biden's plan for more affordable homeownership is the $25,000 in down payment assistance he wants Congress to provide to first-generation homebuyers. What hopeful homebuyers should knowAs a whole, this plan could substantially improve housing affordability, enabling more Americans to become homeowners. And even for homebuyers who qualify for tax credits or other assistance, saving up for a down payment remains a big barrier to homeownership.

Persons: Biden, —, Dan Green, homebuyers Biden, hasn't, doesn't, Green, Daryl Fairweather, Fairweather, White, homebuyers Organizations: Biden, Service, Federal Housing Finance Agency, Consumer Financial, homebuilders, Loan, Program, Bank of America Mortgage, Democrats

The Biden administration has limited credit card late fees to $8, a 75% reduction. Federal Reserve BoardA study by the CFPB published in 2022 showed that credit card late fees are disproportionally collected from people in low-income neighborhoods. The Good Brigade/Getty ImagesReduced credit card late fees would also be worth about $414 million to the real estate industry. A drop in the bucket of credit card costsCredit card debt is now at record levels and interest rates on those cards have soared. Interest and other credit card fees cost consumers more than $1,100 a year and are still growing.

Persons: Biden, Vance Ginn, Jenny Thorvaldson, Thorvaldson Organizations: Consumer Financial, Business, IMPLAN, Biden, Federal Reserve Bank, Federal, Brigade, Centers for Disease Control, Money Management, MMI

☆ As late, missed payments rise, credit card borrowers face 'consequences' for falling behind, CFPB says
▼ + stars: | 2024-03-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowThe consequences of missed credit card paymentsThe CFPB found that late fees are often layered on top of other punitive measures credit card companies impose on consumers who miss payments, including negative credit reporting, which can hurt their credit rating. "When consumers don't make required payments, they can face a long list of consequences. More consumers are falling behindCollectively, consumers are having a harder time managing debt amid high interest rates and higher prices. Not only are more cardholders carrying debt from month to month but more are also falling behind on payments, recent reports also show. Credit card delinquency rates surged in 2023, the Federal Reserve Bank of New York found.

Persons: Rohit Chopra, — Organizations: Consumer Financial Protection Bureau, Federal Reserve Bank of New, New York Fed Locations: Federal Reserve Bank of New York

☆ Credit card late fees capped at $8 as part of Biden administration crackdown on junk fees
▼ + stars: | 2024-03-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

CNN —Federal regulators finalized a rule on Tuesday to cap most credit card late fees at $8 as part of a broader push by the Biden administration to eliminate junk fees. The new rule applies to large credit card issuers – those with more than 1 million accounts. These companies represent more than 95% of total outstanding credit card debt, according to the CFPB. It also comes as Americans continue to pile on credit card debt, which recently exceeded a record $1.1 trillion. Some borrowers, especially Millennials and those with lower incomes, have been falling behind on their credit card debt following more than two years of high inflation.

Persons: Biden, ”, Rohit Chopra, “, Greg Baer, Joe Biden, “ It’s, Chuck Bell Organizations: CNN, Consumer Financial, White, Bank Policy Institute, Council, Consumer

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