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SACRAMENTO, Calif. (AP) — A new plan from California's insurance commissioner aims to stop the nation's top insurers from leaving the wildfire-prone state by letting them consider climate risks when setting their prices. Unlike most states, California tightly restricts how insurance companies can price policies. Companies aren't allowed to factor in current or future risks when deciding how much to charge for an insurance policy. It’s one reason why, in the past year, seven of California’s top insurance companies have paused or restricted new business in the state. On Thursday, California Insurance Commissioner Ricardo Lara said the state will write new rules to let insurers look to the future when setting their rates.

Persons: aren't, Ricardo Lara, ” Lara, Denni Ritter, Amy Bach, United, “, Ken Sweet Organizations: First Street Foundation, California, American, Casualty Insurance Association, Consumer Watchdog, Associated Press Locations: SACRAMENTO, Calif, California, Florida, New York

☆ Some student-loan borrowers are getting kicked out of classes and racking up debt after being placed in shady payment plans with minimal legal protection, a federal consumer watchdog says
▼ + stars: | 2023-09-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

It found the plans can have predatory terms that include big late fees and aggressive debt collection practices. AdvertisementAdvertisementThe report analyzed 450 institutions' payment plans — 60% of which outsourced management of the payment plans to third-party financial service providers, and it found that the interest-fee plans aren't as affordable as they sound. Additionally, the inconsistency among payment plans can leave students facing disparate consequences for missing a payment. CFPB example of late fees on tuition payment plans. The CFPB said it will continue to monitor schools' payment plans to ensure they are in accordance with consumer law.

Persons: Rohit Chopra, Joe Biden's Organizations: Service, Consumer Financial, Education Department Locations: Wall, Silicon

☆ Withheld transcripts, kicked off campus: College payment plans pose risks, consumer watchdog warns
▼ + stars: | 2023-09-15 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

However, a new report by the Consumer Financial Protection Bureau warns of a number of risks associated with these payment plans, including snowballing charges and aggressive collection practices. Nearly 4 million students use payment plansNearly all colleges offer some sort of tuition payment plan, the CFPB found. Under the plans, tuition and other education expenses are typically spread out into several payments over a semester or academic year. Most college payment plans are interest-free, but there can be enrollment fees and other charges involved, the CFPB found. "If the family misses a payment, some tuition payment plans may be converted into private student loans with unfavorable terms," he said.

Persons: Rohit Chopra, they're, Elaine Rubin, Rubin, Mark Kantrowitz, delinquencies Organizations: Istock, Consumer Financial, Finance, Money, Homeowners Locations: Edvisors

☆ Conservatives hope Supreme Court defangs US consumer watchdog
▼ + stars: | 2023-09-12 | by ( John Kruzel | ) www.reuters.com time to read: +6 min

But the watchdog's future may be in peril thanks to a case now before the U.S. Supreme Court. Pro-business conservatives and their Republican allies believe the court fight has brought them closer than ever to dismantling the CFPB. Congress, then controlled by Democrats, authorized the agency to supervise certain financial institutions' compliance with federal consumer laws, backed by the threat of lawsuits and fines. Circuit Court of Appeals last October ruled that the agency's funding structure violated the Constitution. Biden's administration told the Supreme Court that the CFPB's funding structure approved by Congress - with a fixed amount going to the agency annually - was effectively "a standing, capped lump-sum appropriation."

Persons: Clarence Thomas, Samuel Alito, Kevin Wurm, Wells, Joe Biden's, Ellen Harnick, Barack Obama, Mick Mulvaney, Donald Trump, Mulvaney, John Kruzel, Douglas Gillison, Will Dunham, Scott Malone Organizations: U.S, Supreme, REUTERS, Rights, Consumer Financial, Bureau, Fifth Third Bank, U.S . Federal, Congress, Center for Responsible, Republican, Democrats, Republicans, Republican U.S, Community Financial Services Association of America, Consumer Service Alliance of Texas, Circuit, Trump, Federal Deposit Insurance Corporation, Office, Federal Reserve, Thomson Locations: Washington , U.S, New Orleans

CANBERRA, Australia (AP) — Qantas Airways lost its challenge to a court ruling on Wednesday that the Australian flag carrier had illegally fired 1,700 baggage handlers, cleaners and other ground staff at the height of pandemic travel disruptions. Seven High Court judges unanimously rejected Qantas’ appeal against a Federal Court full-bench decision. That court upheld a Federal Court judge’s ruling that the sacking of Qantas staff at 10 Australian airports in 2020 was illegal. Australian Competition and Consumer Commission initiated the Federal Court lawsuit two weeks ago for what it considers Australia’s most serious-ever breach of consumer law. As travel has ramped up, outsourcing of Qantas jobs has been blamed for a slew of problems including high rates of lost and mishandled luggage.

Persons: Alan Joyce, Michael Kaine, Kaine, Vanessa Hudson, ” Kaine Organizations: — Qantas Airways, Australian, Qantas, Federal, Competition, Consumer Commission, Court, Transport Workers ’ Union, Federal Court Locations: CANBERRA, Australia, Sydney

☆ Homeowners should be worried about a legal battle that could jeopardize 'the stability of the housing market,' the head of a federal consumer watchdog says
▼ + stars: | 2023-09-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Supreme Court will soon hear a case challenging the CFPB's funding structure. Housing groups also warned of chaos in the industry if CFPB's funding is upended. But the Supreme Court threat to the CFPB's funding structure "would raise significant concerns for the stability of the housing market and the financial system more broadly," Chopra said. "Reverting to a system without these regulations would create uncertainty for the mortgage industry and the economy," Chopra said. At this point, it's unclear how broadly the Supreme Court will rule, and if it will strike down the CFPB's funding structure entirely.

Persons: Rohit Chopra, —, Chopra, homebuyers Organizations: Housing, Service, Financial, Community Financial Services Association of America Ltd, Consumer Financial, Bureau, Federal Reserve, Fifth Circuit, Mortgage Collaborative National Conference, Congress, Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors Locations: Wall, Silicon

☆ Federal Court Says Consumer Watchdog Can’t Check Banks for Discrimination
▼ + stars: | 2023-09-11 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +2 min

“A longstanding and straightforward federal law prohibits unfair acts and practices, stating that financial firms cannot subject consumers to substantial and unavoidable harm, Mr. Gilford said. Banks have long tried to limit the ways regulators can penalize them. The trade groups behind the lawsuit had originally stressed that their main impetus for suing the C.F.P.B. The regulator had added “discrimination” to a manual provided to financial firms explaining how to prepare for the agency’s periodic checks on their operations. Officials should have given them more warning, the groups argued, and a chance to submit public comments on the matter before finalizing the change.

Persons: ”, Sam Gilford, Gilford, “, Banks, George Floyd’s, Wells, Trump, Obama Organizations: Bank of America Locations: Wells Fargo

☆ Student-loan borrowers' biggest defender in the government is in jeopardy
▼ + stars: | 2023-09-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +9 min

The ruling could have significant implications for student-loan borrowers — and consumers nationwide. As federal borrowers have been gearing up for the return to loan repayment in October, the agency cracked down on companies that it accused of illegally charging borrowers for normally free debt-relief services. The Supreme Court is hearing oral arguments on the case on October 3. The CFPB's enforcement actions against this type of illegal conduct are important to protecting borrowers' financial security and obtaining their money back." Now consumers will have to wait and see how the Supreme Court views a top federal consumer watchdog's constitutionality.

Persons: Sen, Elizabeth Warren of Massachusetts, Shahid Naeem, Naeem, Dodd, Frank Wall, Bill Clark, Devin Watkins, they're, beholden Organizations: Service, Supreme, Financial, Community Financial Services Association of America Ltd, Consumer Financial, Federal Reserve, Fifth Circuit, Trump, Fifth, Financial Services Association of America, American Economic Liberties, Congress, Frank Wall Street Reform, Consumer, Federal Deposit Insurance Corp, Inc, Getty, Competitive Enterprise Institute, American Association of, Social Security Locations: Wall, Silicon, Washington , DC

☆ Qantas CEO Alan Joyce to depart early as airline looks to rebuild reputation
▼ + stars: | 2023-09-05 | by ( ) www.cnbc.com time to read: +1 min

Australia's Qantas Airways said its long-serving CEO would bring forward his retirement amid a publicity firestorm over an accusation of illegal ticket sales, signalling what the flagship carrier hopes is the end of a tumultuous period. Five days earlier, Australia's consumer watchdog sued Qantas alleging it sold tickets to some 8,000 flights in mid-2022 after they were cancelled, violating the country's consumer law. Qantas had issued two apologies, blaming tough industry conditions at the time. Over a decade and a half Joyce faced regular criticism for cutting jobs, including a 2011 decision to ground the entire Qantas fleet over an industrial dispute. Even before the fares-for-no-flights scandal, Qantas was facing negative headlines over reports it campaigned successfully to have Australia's federal government stop rival Qatar Airways from running additional flights to Australia.

Persons: Alan Joyce, Joyce Organizations: Qantas Airways, Qantas, Qatar Airways Locations: Australia

CANBERRA, Australia (AP) — The boss of Australian airline Qantas said Tuesday he would leave his job immediately — two months earlier than planned — following a series of embarrassing revelations about the company, including allegations it sold tickets for flights that had already been canceled. The airline said Vanessa Hudson would take over as managing director and group chief executive from Wednesday. The announcement came after a difficult few weeks for Qantas and Joyce. Qantas previously acknowledged its standards had fallen well short of expectations as the airline emerged from the COVID-19 pandemic. The airline has since come under pressure to pay back the AU$2.7 billion it received from the Australian government during the coronavirus pandemic.

Persons: Alan Joyce, Vanessa Hudson, Joyce, Qantas “, ”, Vanessa, Richard Goyder, “ Alan, ” Goyder, Hudson Organizations: Qantas, Australian Competition, Consumer Commission, “ Locations: CANBERRA, Australia

☆ Student-loan borrowers are facing new bills next month — but minor paperwork errors and lost payments are causing 'a lack of clarity about absolutely anything'
▼ + stars: | 2023-09-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The student-loan payment pause is over, and some borrowers are facing problems with repayment. "You remain responsible for making your monthly payments." AdvertisementAdvertisementAfter more than three years, the pause on federal student-loan payments ended on Friday — interest started accruing again on September 1, and borrowers will face monthly bills again beginning in October. Still, there's a chance relief could come for borrowers who have been making payments on income-driven repayment plans. But for borrowers like Hunter who are struggling to get answers from their servicer, it's unclear what improvements can be made.

Persons: they're, Heather Hunter, Hunter, Sarah, she's, —, servicers, there's, Joe Biden Organizations: Service, Education Department, Consumer Financial, Federal Student Aid Locations: Wall, Silicon, autopay

☆ $2 to cut a sandwich in half: The outrageous rip-offs targeting tourists in Italy
▼ + stars: | 2023-08-19 | by ( Barbie Latza Nadeau | ) edition.cnn.com time to read: +6 min

– plate near Portofino in northern Italy, and 10 cents for a sprinkle of cocoa on a cappuccino at a Lake Como coffee bar. Easy targetsOutrageous charges, like 2 euros for slicing a ham sandwich, have been labeled "crazy receipts" by the Italian media. High fuel and energy prices have made it an incredibly expensive summer. Worst offendersSome of the highest price hikes in Europe have left a vacation at home too expensive for many Italians. “We had this trip planned before Covid and have been dreaming about it even though we read the headlines about expensive prices.

Persons: Rome, Rome CNN —, Stefano Mazzola, Giorgia Meloni, ”, Furio, Truzzi, Francesca Volpi, Sharm el Sheik, ” Paolo Manca, Betsy, James Cramer, ” Betsy, “, Alberto Pizzoli, Antonio Coviello, Daniela Santanche Organizations: Rome CNN, CNN, Bloomberg, Getty, Italy’s National Research Center Locations: Italian, Lake Como, Ostia, Sardinia, Portofino, Italy, Como, Albania, Montenegro, Ukraine, Europe, Puglia, Egypt, Piazza Navona, Rome, AFP

☆ These children’s beds are being recalled due to strangulation and death risks, consumer watchdog says
▼ + stars: | 2023-08-19 | by ( Ashley R. Williams | ) edition.cnn.com time to read: +1 min

CNN —Parents may want to check their children’s rooms for a recalled bed with hazards that could potentially kill, according to a product safety commission. The entrapment risk comes from the spacing of the beds’ spindles, according to a Thursday news release from the CPSC. The bed’s design “allows a child’s torso to slip through the rail opening but will not allow their head to pass, posing entrapment and strangulation hazards that could result in death,” the release said. At least two children have been entrapped in the bed rails, including a 21-month-old boy and a 4-year-old girl. The CPSC advised disposing the recalled beds rather than reselling or donating them, as it is a federal violation to do so.

Persons: “ Organizations: CNN, Consumer Product Safety, Bell, State of, Better Locations: Ohio, State of Ohio

☆ CFPB to crack down on data brokers, Chopra says at White House event
▼ + stars: | 2023-08-15 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

WASHINGTON — The White House on Tuesday held a roundtable examining potential harmful data broker practices as part of an overall strategy to protect Americans' privacy. The CFPB's new rule proposals will build upon the FCRA to hold data brokers that sell highly sensitive information more accountable. One proposal, said Chopra, will define a data broker dealing in certain types of consumer data as a consumer reporting agency and the brokers' sale of data as a consumer report. Another will clarify whether credit header data, the portion of a credit report that contains identifying information, can be considered a covered consumer report. "We applaud the steps the Consumer Protection Financial Bureau is taking to stop data brokers from unlawfully collecting and selling millions of Americans' sensitive data," she said.

Persons: WASHINGTON, Chopra, There's, Arati Prabhakar, Lael Brainard, Lina Khan, Brian Boynton, Khan, Brainard Organizations: Consumer, Fair, White, Office of Science, Technology, National Economic Council, Federal Trade, Justice Department's Civil, FTC, Protection

☆ California agency probes automakers' data privacy practices
▼ + stars: | 2023-07-31 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

Companies Tesla Inc FollowWASHINGTON, July 31 (Reuters) - A California state agency on Monday said it is reviewing the privacy practices of automakers and vehicle technology companies amid concerns about the growing volume of data collected by cars. The California Privacy Protection Agency (CPPA) said its Enforcement Division is making inquiries about vehicles embedded with features like location sharing, web-based entertainment, smartphone integration, and cameras. The agency said vehicle privacy considerations "are critical because these vehicles often automatically gather consumers’ locations, personal preferences, and details about their daily lives." Regulators around the world have raised concerns about the volume of personal data collected by vehicles that increasingly gather, store and transmit information for entertainment, performance and safety purposes. Mobilisights said it would operate under strict privacy safeguards, sharing only personal data with customer consent and allowing owners to opt out even after consenting.

Persons: ”, Ashkan Soltani, carmaker, carmakers, Mobilisights, David Shepardson, Mark Porter, Aurora Ellis Organizations: Tesla, WASHINGTON, California Privacy Protection Agency, Regulators, Consumer Watchdog, U.S, Chrysler, Thomson Locations: California

☆ One family pocketed $7.6 million by taking cans and bottles from Arizona and recycling them in California. That's fraud, prosecutors say.
▼ + stars: | 2023-07-26 | by ( Charles R. Davis | ) www.businessinsider.com time to read: +3 min

Prosecutors say a family that made $7.6 million from recycling defrauded the state of California. The family, based in Southern California, is accused of recycling materials they purchased in Arizona. Investigators recovered more than $1 million worth of "illegally imported beverage containers." The recycling operation earned the family $7.6 million, according to a statement from the office of California Attorney General Rob Bonta. Between 2010 and 2019, at least 93 people in California were convicted of recycling fraud, according to a report by the nonprofit Consumer Watchdog.

Persons: Rob Bonta, Bonta Organizations: Investigators, Service, Consumer Watchdog Locations: California, Southern California, Arizona, Riverside County

☆ US consumer watchdog warns no more 'rubber stamp' for bank mergers
▼ + stars: | 2023-07-20 | by ( Douglas Gillison | ) www.reuters.com time to read: +3 min

Bank executives, meanwhile, complain that regulators' foot-dragging and uncertainty caused by looming regulatory reforms have depressed merger activity among healthy banks to historic lows. That drew the ire of Democratic Senator Elizabeth Warren, who helped create the CFPB and backed Chopra for the director role. Chopra called in May for the FDIC to adopt changes to bank merger guidelines. He declined to discuss possible changes but said the approval process was already evolving, citing a review of bank merger guidelines undertaken in 2022. Reporting by Douglas Gillison; Editing by Michelle Price and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

Persons: Rohit Chopra, Banks, Chopra, Janet Yellen, Michael Hsu, JPMorgan Chase, Elizabeth Warren, Douglas Gillison, Michelle Price, Jamie Freed Organizations: Consumer Financial Protection Bureau, Reuters, Federal Deposit Insurance Corporation, Bank, JPMorgan, Democratic Party, First, FDIC, Bank of America, Thomson Locations: First Republic, Wells Fargo

☆ Are you owed a slice of the $100 million fine Bank of America has to pay?
▼ + stars: | 2023-07-14 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Bank of America was fined $250 million this week by US federal regulators for allegedly harming customers by double-dipping on fees, withholding credit card rewards and opening fake accounts. Of those fines, $100 million is set to go directly to consumers who were impacted by the bank’s alleged wrongdoing. People are generally bad at keeping or knowing how to access relatively recent bank records, said Harvey Rosenfield, founder of Consumer Watchdog, a nonprofit consumer advocacy group. It’s unlikely the average customer saved copies of their bank records or credit reports for over a decade, he said. As part of the agreement Bank of America settled with the CFPB, it is also required to identify consumers who were harmed.

Persons: they’re, you’re, you’ve, there’s, Bank of America’s, Harvey Rosenfield, didn’t, CFPB Organizations: New, New York CNN — Bank of America, Consumer Financial Protection Bureau, CNN, Bank of America, Bank of, Consumer Watchdog, Bank, of America Locations: New York

☆ California new oil well approvals have nearly ground to a halt
▼ + stars: | 2023-07-13 | by ( Nichola Groom | ) www.reuters.com time to read: +3 min

July 13 (Reuters) - California, the seventh-biggest U.S. crude oil producer, has put a near halt on issuing permits for new drilling this year, according to state data. New drilling permits have steadily declined since Gavin Newsom became governor in 2019, but the current rate of approval represents a sudden and dramatic drop. In an email, CalGEM attributed the smaller number of approvals to both the broader decline in California oil production and litigation that has paused permitting by Kern County, the center of the state's oil industry. The governor wants to phase out oil drilling in the state by 2045. California also passed a law last year banning oil and gas drilling within 3,200 feet of structures including homes, schools and hospitals.

Persons: Gavin Newsom, CalGEM, CIPA's Zierman, CIPA, Liza Tucker, Nichola Groom, Leslie Adler Organizations: Energy Management Division, California Independent Petroleum Association, Sentinel Peak Resources, San Luis Obispo County, Natural Resources Management, FracTracker Alliance, Reuters, Consumer, Consumer Watchdog, tinker, Thomson Locations: California, Kern County, San Luis Obispo

☆ Federal watchdog cracks down on Bank of America but 'junk fees' aren't going anywhere, expert says — it's a 'game of whack-a-mole'
▼ + stars: | 2023-07-11 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Junk fees are additional, often hidden, charges that can come from a range of lenders. Overdraft fees are a good example of a 'game of whack-a-mole' when it comes to fees. Ted Rossman senior industry analyst at Bankrate"Overdraft fees are a good example of a 'game of whack-a-mole' when it comes to fees," Rossman said. "The Consumer Financial Protection Bureau took a big step by banning surprise overdraft fees," she said. The average overdraft fee costs $29.80, Bankrate's research found, while the average nonsufficient funds fee is $26.58.

Persons: Ted Rossman, Rossman, surcharges, Bankrate, Joe Biden, Biden, Nadine Chabrier Organizations: Center, Financial

☆ Over 7,100 student-loan borrowers will get $3.5 million in refunds after a debt relief company was accused of illegally charging them up to $699 in fees to reduce their federal balances, a consumer wa
▼ + stars: | 2023-07-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

7,100 borrowers will receive $3.5 million worth of checks in the mail after the CFPB said they were scammed. The CFPB accused Timemark, a debt relief company, of illegally charging federal borrowers fees. Scams are likely to grow following the Supreme Court decision to strike down student-debt relief. According to the bureau, Timemark charged borrowers "illegal advance fees" to reduce their federal student-loan balances when the Education Department offers those services for free. Over the past few years, the CFPB — along with the Federal Trade Commission — have scrutinized a range of student-debt relief companies over potential fraudulent behavior.

Persons: Timemark, —, Joe Biden's, scammers Organizations: Service, Consumer Financial, Bureau, Timemark, Inc, Education Department, Epiq Systems, Federal Trade Commission, FTC, Federal Locations: Timemark

☆ Home insurers reconsider policies in Florida and California due to severe weather
▼ + stars: | 2023-06-30 | 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 EmailHome insurers reconsider policies in Florida and California due to severe weatherNancy Watkins, Milliman Principal and Consulting actuary, and Carmen Balber, Consumer Watchdog executive director, join 'Last Call' to discuss insurance agencies reconsidering policies in disaster prone states like Florida and California.

Persons: Nancy Watkins, Carmen Balber Organizations: Consulting, Consumer Watchdog Locations: Florida, California

☆ 37,800 student-loan borrowers are getting $3.3 million worth of checks in the mail after a debt relief company 'falsely' promised loan forgiveness but instead 'pocketed customers' payments,' a federal
▼ + stars: | 2023-06-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The FTC accused Arete Financial Group of scamming student-loan borrowers out of $3.3 million. Specifically, the FTC said the group promised debt relief but instead pocketed consumers' payments. Last week, the Federal Trade Commission announced that it is sending checks totaling over $3.3 million to 37,800 student-loan borrowers who gave money to Arete Financial Group, a debt-relief company. According to the FTC's press release, Arete Financial pretended to be affiliated with the Education Department and "falsely" promised borrowers debt relief, but instead, "pocketed customers' payments and never provided the promised relief." "These lawsuits to shut down student loan debt relief schemes continue the agency's crackdown on junk fees, unwanted calls, and financial exploitation."

Persons: —, Arete, Joe Biden's, Samuel Levine Organizations: FTC, Arete, Service, Federal Trade Commission, Arete Financial, Education Department, Administration, White House and Education Department, Consumer Financial, Bureau, FTC's Bureau, Consumer

☆ Over 14 million student-loan borrowers will resume payments this year under new companies — and that'll further 'complicate' the repayment process, a federal consumer watchdog says
▼ + stars: | 2023-06-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

14 million student-loan borrowers could resume payments under a new servicer, the CFPB said in a new report. It could "complicate" the repayment process due to confusion on where the debt is owed, per the report. According to the report, 44%, or 14 million, student-loan borrowers in the bureau's sample will have their loans managed by at least one new student-loan company when payments resume, which could "complicate" the process. Additionally, the bureau found that about one in five borrowers in its sample have "risk factors" that suggest they could struggle when payments resume. "I'm in this limbo period not really knowing what's going on with my student loans," he said.

Persons: —, delinquencies, MOHELA, I'm Organizations: Service, Education Department, Consumer Financial, Public, Federal Student Aid, — Locations: autopay

☆ US consumer watchdog defends credit card 'junk fee' proposal
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +1 min

June 13 (Reuters) - The top U.S. consumer watchdog on Tuesday defended a proposal to limit late fees charged on credit card balances, a move that has faced fierce opposition from the banking industry. In testimony before the Senate, Consumer Financial Protection Bureau Director Rohit Chopra rejected arguments by banks that capping late fees would force them recover the lost revenue by charging higher interest rates or cutting access to credit for some. "They are fully allowed to capture their costs," Chopra said under questioning from Senator Tim Scott, the top Republican on the Senate Banking Committee, who recently announced his 2024 presidential bid. "One of the things that our issuers tell us is that they don't want to profit off of late fees. The CFPB in February rolled out a regulatory proposal that would cap late fees at $8, far lower than the current $30-$41, unless credit card issuers could justify charging more, part of the Biden administration's attack on what it calls consumer "junk fees."

Persons: Rohit Chopra, Chopra, Tim Scott, Biden, Scott, Douglas Gillison, Deepa Babington Organizations: Senate, Consumer Financial, Republican, Senate Banking Committee, Thomson

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