For Immediate Release: March 5, 2024
Contact: Ryan Hite, Communications Director
Washington, D.C.: Ed Martin, president of Phyllis Schlafly Eagles, released the following statement regarding the Consumer Financial Protection Bureau’s (CFPB) new rule imposing price controls on credit card late fees:
“Price controls do not work; they have never worked, and the CFPB’s latest quest to impose price controls on credit card late fees isn’t an exception.
“This rule, released on Tuesday, during the week of the State of the Union, is a political exercise aimed at helping the president’s re-election campaign rather than assisting consumers.
“Capping credit card late fees beyond the current $32 cap will just create perverse incentives that will encourage people to miss their credit card payments. It will create an illusion that missing a payment won’t hurt anymore when in reality, it will — interest payments will compound, credit scores will be impacted, and consumers’ account fees increase as banks figure out how to pay for this new rule.”
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