Biden Administration Cuts Credit Card Fees

[probinson]

Or, and bear with me on this; making some people's lives a bit easier.

The only people who benefit from a late-fee reduction are people who continue to pay late. I guess with that extra $24/month they could pay more on their interest-laden balance and maybe pay it off in 19 years instead of 20. So in that regard, I suppose it does make it "a bit easier".

 

[Larniavc]

Didn't write that any tax money is involved. But if you think the bank issuers of credit cards will not seek to recapture those lost fees from us in other ways then you are mistaken.

That's where the invisible hand of the market keeps things cheap because of the competition. If one credit card raises their rates people can freely choose another one. It's a perfect solution. Good old Joe is encouraging competition and a healthy economic environment where people can get affordable credit that they can pay back without penalty.

Excelsior!

 

[Larniavc]

The only people who benefit from a late-fee reduction are people who continue to pay late.

Correct. And there are lots of people who through lack of funds get caught in a financial death spiral who will benefit from these changes.

 

[probinson]

Correct. And there are lots of people who through lack of funds get caught in a financial death spiral who will benefit from these changes.

You are incorrect.

I was in the death spiral for about 5 years. I got so desperate in the mid-2000s, I was using one credit card to pay another, because it's all I could do.

I can tell you from firsthand experience that in that death spiral, $24/month is, at best, a token gesture that will do absolutely nothing to help people.

I'm not opposed to the reduction in late fees, which I would agree are far too high. But will people in the death spiral "benefit" from it? Almost certainly not at all.

 

[Larniavc]

But will people in the death spiral "benefit" from it? Almost certainly not at all.

Ah, well now you are arguing that because it will not help everyone it is pointless. I've no interest in going down that road with.

 

[probinson]

Ah, well now you are arguing that because it will not help everyone it is pointless. I've no interest in going down that road with.

I didn't say that at all. In fact, I said that I'm not opposed to the reduction in late fees.

I am, however, opposed to people pretending like it will provide some kind of relief to the people that are so bad off financially that they must pay late every month. It will not.

 

[Larniavc]

It will not.

I agree to differ.

 

[probinson]

I agree to differ.

That's certainly your prerogative.

I don't know if you've ever had the misfortune of being in that financial death spiral. I lived there for about 5 years. Late fees were the least of my concern.

Thankfully, I've not made a late payment in over 15 years, but back when that was my daily reality, this reduction in fees would not have helped me in the least.

 

[iluvatar5150]

Dems just doing business as usual: Buying more votes with your money.

As opposed to Republicans who... don't?

 

[Fantine]

Is that lie folks who go badger watching in a nature hide or something? But with Democrats in their native environment?

Are you trying to insult Democrats? The Democrats I know are pretty much professors, teachers, attorneys, and other professionals. And while some go nature hiking it's always unarmed, except perhaps for cameras. Many are painting and photography hobbyists, after all.

It is always enlightening and uplifting to be with them. You should visit some of your Democratic neighbors and develop an appreciation for them.

 

[Fantine]

See my above post. You're preaching to the choir.



Not sure why you're singling out Oklahoma. The majority of states allow unregulated payday loans at insanely high interest rates.

View attachment 343699

Legal Status of Payday Loans by State

Check the legal status of payday loans by state. Find out which regulations apply for each state and how to make a complaint.

finmasters.com

Interestingly enough, a $24 reduction in late fees on credit card payments won't help with any of that.

I'm familiar with Oklahoma. I volunteered with Habitat for Humanity for several years, interviewing and approving prospective homeowners, and it was saddening and discouraging to see what they had been led to do in desperate times. We also hated the high interest rates they paid on old clunkers, often leaving them owing the same amount year after year despite making monthly payments.

 

[Servus]

Getting desperate. Next will be a chicken in every pot.

 

[Larniavc]

It is always enlightening and uplifting to be with them. You should visit some of your Democratic neighbors and develop an appreciation for them.

My apologies I was making a joke that did not land as well as I had hope.

 

[Larniavc]

Getting desperate. Next will be a chicken in every pot.

And people having enough food would be bad because?

 

[Servus]

And people having enough food would be bad because?

You probably don't get the reference because you're not an American.

 

[DaisyDay]

Is that lie folks who go badger watching in a nature hide or something? But with Democrats in their native environment?

No, watching primary election results (Super Tuesday) on TV with friends.

 

[iluvatar5150]

Getting desperate. Next will be a chicken in every pot.

One can only hope. The candidate who supposedly made that campaign promise wound up winning.

 

[Servus]

One can only hope. The candidate who supposedly made that campaign promise wound up winning.

Although he was a Republican the Democrats tried to sabotage.

 

[iluvatar5150]

Although he was a Republican the Democrats tried to sabotage.

Well, ya know, parties change. These days, it's Dems promising a chicken in every pot and Republicans courting white racists.

 

[Larniavc]

You probably don't get the reference because you're not an American.

I do understand the reference. Hence my post.