A judge has blocked President Joe Biden’s attempts to cap credit card late fees at $8.
Transcript:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are coming off the best week of the year with the Dow on a winning streak. Investors are looking ahead to key corporate earnings – and inflation data Wednesday. The April CPI report will give investors a hint into the Fed’s path forward on interest rates. Markets are pricing in a close to a 50 percent chance that the central bank slashes rates in September.
In other news – A federal judge has blocked the Biden Administration’s attempt to cap credit card late fees. In March, regulators approved an $8 cap on credit card late fees, cutting the amount consumers pay on average by about 75%.
The judge ruled in favor of several businesses and organizations that alleged the new rule violated several federal regulations. The block is in effect until a court hearing ultimately decides the fate of the new rule.
According to the Consumer Financial Protection Bureau, credit card users would save a collective $10 billion a year with the new cap. The CFPB released a statement after the ruling saying “Consumers will shoulder $800 million in late fees every month that the rule is delayed — money that pads the profit margins of the largest credit card issuers.”
According to the CFPB more than 45 million people are charged late fees every year. And in 2022 – that brought in more than more than $14 billion for credit card companies. Americans currently hold more than $1 trillion in collective credit card debt.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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