Relief from Credit Card Late Fees
Wins for consumers as CFPB takes on big fights
The Consumer Financial Protection Bureau (CFPB) is moving to reduce or eliminate so-called “junk fees” in the banking and credit card space.
$12 Billion in Late Fees: Consumers Pay, Credit Card Companies Profit
Jason Mikula in Fintech Business Weekly reports on the most recent move by the CFPB to take on credit card fees:
“. . . the CFPB is now taking aim at credit card penalty fees, which the consumer protection agency says cost consumers some $12 billion per year. Late fees make up 10% of the total cost of credit cards to customers, according to the bureau.
The fees are also disproportionately paid by lower-income and subprime card holders.”
CFPB Director Rohit Chopra has made clear his disdain for such fees and has stated a desire to see these fees significantly reined-in:
“Many credit card issuers have made late fee penalties a core part of their profit model. Markets work best when companies compete on price and service, rather than relying on back-end fees that obscure the true cost.” said CFPB Director Rohit Chopra. “Given their current practices, we expect that credit card issuers will hike fees, based on inflation, as limits continue to rise.”
WARNING: Sky High Interest Rates Ahead - Stay Away from EasyPay
Car repairs can be expensive and unavoidable. Yes, you want your car back on the road as soon as possible. But you may not have the money ready to pay for an expensive repair. Going without a car is often not an option.
Enter the auto repair loan. Many major car repair shops offer financing plans so you can pay for your repair over time and get your car back ASAP.
That’s all well and good unless you’re paying 100% or more in interest.
The National Consumer Law Center (NCLC) is out with a consumer warning on car repair loans.
Here are some of the complaints they’ve noted from consumers who use a financing company called EasyPay to finance their car repair loan:
Promises of 90-day full interest rebates that are difficult to claim.
Interest rates of up to 189%, with most of the payments just going toward interest.
Harm to credit reports — sometimes even after the loans are paid in full.
Harassment from debt collectors.
And here are some recommendations if you find yourself caught in the trap of an expensive EasyPay loan:
Share your story, and sign our petition to tell the FDIC to stop these predatory loans.
Opt out of forced arbitration clauses within 60 days to preserve your access to the courts and your negotiating power.
Pay the full loan plus $40 within 90 days to avoid interest. Keep your proof of payment and proof of delivery if you sent it through the mail.
Get legal advice. You may have legal claims to help you dispute the loan.
Complain to the Consumer Financial Protection Bureau and your state Attorney General.
You can stop debits from your bank account through your bank or revoke the lender’s authorization for the debits. But you will still owe the debt and may face debt collection.
Check your credit report at annualcreditreport.com and file a dispute if you notice inaccuracies.
How does EasyPay get away with charging 189% for loans? They collaborate with predatory lender TAB bank to evade state rate caps.