Consumer Financial Protection Bureau Caves on Credit Card Fees: Credit card companies win battle

[Better Believe It]

Consumer Financial Protection Bureau Caves on Credit Card Fees
Credit card companies win battle over introductory fees
by Common Dreams staff
April 13, 2012

The Consumer Financial Protection Bureau has decided not to challenge credit card companies on introductory fees. Credit card companies had been more aggressive in charging fees to users before they use a credit card, ever since new regulations made it so they could no longer charge more than 25 percent of the total credit limit in standard fees.

The CFPB originally proposed regulations to eliminate the introductory fees, but on Thursday relented and decided not to pursue the matter.

Consumer advocate groups expressed discontent over the decision, and what it says about the possibility of the CFPB as a sufficient consumer watchdog of financial products.

http://www.commondreams.org/headline/2012/04/13-7


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Consumer Bureau Declines to Resist Upfront Credit Card Fees
By TARA SIEGEL BERNARD
April 12, 2012

In one of the first tests of its willingness to show its muscle, the new agency created to protect consumers declined on Thursday to put up a fight.

The agency, the Consumer Financial Protection Bureau, introduced a proposal that would make it easier for credit card issuers to charge fees before borrowers’ accounts were officially open.

The bureau declined to say why it took this course. But some consumer advocates said they believed that the consumer agency, led by Richard Cordray, may be backing down because it has decided to “pick its battles,” while trying to show that it is not unfriendly to business.

But other advocates said they could not understand why the agency was not taking a more aggressive stand. “Even if it is a small rule, it affects the most vulnerable of consumers — consumers with impaired credit records, often of limited means, who end up with these expensive fee-harvester cards,” said Chi Chi Wu, a lawyer at the National Consumer Law Center, referring to cards marketed to people with tarnished credit histories. “Exactly the sort of consumers that we think C.F.P.B. should stand strongest for.”

Read the full article at:

http://www.nytimes.com/2012/04/13/your-money/regulator-eases-limit-on-card-fees.html?_r=2


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Consumer Financial Protection Bureau Backs Down In Fight To Limit Credit Card Fees
by Loren Berlin
April 12, 2012

The government agency tasked with protecting consumers is backing down in its fight to limit credit card fees.

The Consumer Financial Protection Bureau, the federal watchdog for all things that affect consumers' wallets, has proposed doing away with an amendment to existing legislation that would limit the amount of fees a credit card company can charge a consumer when applying to open an account.

"It's a big deal for those consumers who end up getting one of these credit cards that charge extremely high fees up front," said Chi Chi Wu, a staff attorney at the nonprofit National Consumer Law Center, in an interview with The Huffington Post. "Basically, it reopens a loophole that the Federal Reserve had closed."

The agency's change of heart is a win for credit card companies, said Mark Williams, a former Federal Reserve examiner, in an interview with the Associated Press.

Read the full article at:

http://www.huffingtonpost.com/2012/04/12/credit-card-fees_n_1421170.html

[Zalatix]

1. Let's see the credit card companies win battles against customers who won't use credit cards

[movonne]

3. I try to use cash rather than the credit card...

[anti-alec]

5. I don't have any credit cards.

Because all my credit cards are in debt settlements. I have managed to get out of using credit cards and using what limited cash I have while paying a monthly fee to pay off the debt holders. I have about 18 months left to pay....

Chase has been paid off, Barclay Bank (Democratic credit card) paid off, Citi paid off. American Express is in litigation with me (with hopes of settling within weeks).

The rest are quietly being settled.

I signed a 3 year contract back in 2010 with the settlement company, and they have been great. If you are interested - let me know, and I'll give you guys the company name.

[saras]

2. Twentyfive percent of the CREDIT LIMIT in FEES? Holy fucking mother of God!

[dixiegrrrrl]

4. CC companies know a lot of people are relying on cards to make it each month.

So, sadly, dropping the cards is not an a happy option for some folks.

So far ( knock on wood) neither my bank nor credit card companies have any fees,
and we always pay cards off every month, they are a convenience for online shopping.
But if they try to charge us, we do have the option of dropping the card.

[anti-alec]

6. When I get out of this mess I'm in

I'm going to be carrying one credit card - my CU credit card - very low interest rates and fees.

[Better Believe It]

7. You're right. Tearing up credit cards is not an option for tens of millions of folks.