a year — without harming credit card companies. With the bank lobby fighting the new regulations, Warren wants credit card companies to explain themselves.
Altogether, the regulations would shift some of the burden of paying late fees off consumers and onto banks."Late fees incentivize consumers to overcome or moderate behavioral biases that are potentially harmful to their financial health," the They argued these regulations"will unnecessarily cause financial harm to American consumers — particularly low- and middle-income consumers with a limited credit history" because late fees"enable companies to offset the costs of late payments and their associated risks" for providing credit to cash-strapped Americans.
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