Welcome to today’s podcast. We have breaking news regarding credit card late fees. Recently, the Trump administration successfully reinstated higher credit card late fees by quashing a Biden-era limit that capped these fees at $8.

In a recent court ruling, U.S. District Judge Mark Pittman, appointed by Trump, agreed with the Consumer Financial Protection Bureau's new stance, stating that the previous limit was illegal and violated the 2009 Credit Card Accountability and Disclosure Act. This allows credit card companies to impose penalties that could reach a maximum of $41 for late payments, a move that opponents argue will hurt consumers.

Six business and banking groups, including the U.S. Chamber of Commerce, celebrated the ruling, calling it a “win for consumers and common sense.” However, the Biden administration countered that these excessive fees do not effectively deter future late payments and often compound financial struggles for consumers.

Moreover, this ruling may signal further deregulation as both the House and Senate have previously voted to repeal limits on overdraft fees, potentially costing consumers an additional $5 billion annually. This trend is particularly concerning as it disproportionately affects low-income households and communities of color.

As Chuck Bell from Consumer Reports remarked, "Repealing the CFPB’s limits on overdraft fees gives big banks the green light to rip off their customers." Stay tuned for further developments on this story and its impact on American consumers.
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