News articles like this speak loudly about who this kind of news is written for.
The article headline makes it sound "dangerous" and "bad" for the "lenders." Billions on the line!
It's never "billions on the line for consumers!"
Profits for corporations are always treated by news media as a given and anything interrupting them, including people's real lives, are less important.
this again is why I will pipe in I like biden. So many things have come out of the agencies of this administration. He can't make congress function but he can sure as heck streamline stuff at the executive level.
Loophole of the "payment not received on time fee" of $40.
Obligatory - Join a credit union. They're non profit financial institutions that offer the same service as a bank. As a non profit, their fees and rates are much better.
Washington State Employees Credit Union famously lost a lawsuit over overdraft fees. You can bet your ass if it's an accepted practice at major banks, your Credit Union can and will do similar things, if they want to.
When I moved states and closed my accounts with the local bank I'd been with since my first bank account (and never once paid a fee to) I looked into the credit unions in my area. The fees were absurd, I finally found one that looked decent and then found that there was a $6 fee any time you transferred or withdrew money from any savings accounts. I'm not paying to access my own money. Ended up going with another small local bank and haven't paid a fee yet. Customer service is great too, I give them a call and get a real person the next county over and the few times I've actually gone to a branch they've been almost too nice.
The problem is finding them. I'm still chained to a credit union in another state years after I moved, just because I cannot find a local credit union in my city that will accept me. Plenty of ones for teachers, cops, firefighters, and veteran's, but they won't let a Joe Shmoe with an office gig store money.
I love the bank system of charging you extra money for being broke. Have they capped overdraft fees yet or addressed how they run charges from highest to lowest to maximize fees?
Make it like the new college debt rules. If you are making the minimum payment, then your total balance can't go up. Interest can't be higher than the minimum payment (which is also capped)
Should be 0. If you're late on a payment, you pay compounding interest. The idea that you can somehow charge a fee on top of that is absolutely insane.