Banks Blast Biden Administration for ‘Unfair’ Ban on Credit Card Late Fees

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Distribution

The banking industry is in uproar over the Biden administration’s new rule that would restrict credit card companies from charging late fees. Several major banks have voiced concerns over the proposed regulation, arguing that it would hurt their bottom line and could ultimately lead to higher interest rates for consumers.

Reaction from Industry Leaders

Industry leaders have slammed the new rule, with some claiming that it infringes on their ability to conduct business. “This should not be allowed,” said a spokesperson for a major bank, who wished to remain anonymous. “Late fees are an essential part of our revenue stream and help us manage risk in our portfolio.”

Impact on Consumers

Consumer advocacy groups, on the other hand, have lauded the new rule, saying that it will benefit consumers who often struggle to pay their bills on time. “Late fees can be crippling for those living paycheck to paycheck,” said a representative from a consumer advocacy organization. “This new rule will provide much-needed relief for those who are already struggling financially.”

Government Stance

The Biden administration has defended the new rule, arguing that it is necessary to protect consumers from predatory lending practices. “We believe that credit card companies should not be allowed to profit off of consumers’ financial hardships,” said a White House spokesperson. “This rule will level the playing field and ensure that consumers are treated fairly.”

Conclusion

As the debate rages on, it remains to be seen how the new rule will ultimately impact the banking industry and consumers. One thing is clear: the issue of credit card late fees is a contentious one that will continue to be debated in the coming months.

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