Your Money Minute Credit Card Rates & Fees Still Higher 5/16/25
May 16, 2025
In this quick financial update, the discussion centers on the proposed rule aimed at capping credit card late fees at $8. Tune in to hear about the banking industry's pushback, including potential increases in interest rates. The skepticism surrounding the implementation of these changes adds a layer of intrigue. This episode provides a concise take on how these developments could impact consumers.
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Banks Offset Fee Limits by Raising Rates
- Banks wanted to limit credit card late fees to $8 from $32 to reduce consumer costs.
- They raised interest rates and added other fees to offset revenue loss, increasing consumer expenses.
Banks Keep Higher Fees Post-Rule Doubt
- New White House leadership made banks doubt late fee limit rules would happen.
- Banks keep higher fees and rates that were justified by the expected rule change, not rolling them back.