Credit card issuers Synchrony and Bread Financial raised interest rates and introduced new fees in response to a proposed Consumer Financial Protection Bureau rule to cap late fees at $8. Analysts now believe the rule is unlikely to take effect. Rates for some retail cards reached nearly 36%, and Bread introduced monthly paper statement fees. In March, the CFPB proposed capping late fees at $8 to save consumers $10 billion annually, but banks argue it would shift costs to responsible borrowers.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Credit card issuers Sikriti and Bread Financial raised interest rates and introduced a new fee
00:07in response to a proposed Consumer Financial Protection Bureau rule to cap late fees at $8.
00:13Analysts now believe the rule is unlikely to take effect.
00:16Rates for some retail cards reached nearly 36 percent, and Bread introduced monthly paper
00:21statement fees. In March, the CFPB proposed capping late fees at $8 to save consumers
00:27$10 billion annually. But banks argue it would shift costs to responsible borrowers.