Merchants Payments Coalition’s Post

This is interesting. What are your thoughts? Legislature again snubs ban on no-cash businesses https://vist.ly/395qn #blackowned #blackownedbusinesses #supportblackbusinesses #supportourcommunity #sofloblackpages #shopblackownedbusinesses

Expunging "junk fees" has been a central, and popular, plank of Democratic President Joe Biden's push to bring down prices. And with inflation and the economy at the heart of the presidential race, Democratic candidate Harris has pledged to carry on the fight if elected in November. Read more by Makailah A. Gause and Peter Schroeder

🔔 Pro-cash Legislation Update: Florida lawmakers are considering bills (SB 106 & HB 35) that may mandate businesses to accept cash. The bipartisan effort emphasizes financial inclusion and disaster preparedness. Learn more about the potential impact on businesses and consumers: https://ow.ly/r0Nn50Qq4EA #CashMatters #CashSecurity

We need to stop with these fees. There needs to be a shakeup in this industry and a call to hold both credit card companies and banks accountable with fees. Fees in general have gone too far. Everything has a fee associated with it and we just continue to allow it to occur. Beyond the fees, they have buried so much in the T&C of everything that we have no idea what we are truly agreeing to anymore.

The Ghost of Christmas Past Due wants his late fee. So much for capping credit card late fees. Set to go into effect next week, the U.S. government's rule to cap late fees at $8 is on hold amid growing uncertainty about if it will ever happen. Part of a broader push to eliminate junk fees, the new regulation would've saved consumers $10 billion per year. Like Subway's $5 foot long, the $8 credit card late fee cap would've made reality a little easier for many, but it may disappear without a trace. The rule, which was set to go into effect Tuesday would cut late fees from an average of $32. Applying to large credit card issuers with more than 1 million accounts, those companies represent more than 95% of total outstanding credit card debt in the U.S. According to a national Consumer Reports survey published in September, one in five American adults have paid a credit card late fee in the previous 12 months. As with anything, there are two sides to the story. Banks view the cap as an attack on their business model, while consumer advocates argue the fees are excessive relative to the risk. One point most can agree on: junk fees and surcharges are creeping into every corner of our lives, from everyday purchases to business transactions. Their lack of transparency makes them confusing and complex, creating a breeding ground for potential consumer exploitation https://lnkd.in/gPc3pRKh #creditcard #government #unitedstates #consumers #banks #inflation

Excited to share my latest Forbes column on the unintended consequences of President Biden's war on so-called "junk fees." Eliminating hidden charges may sound consumer-friendly, but these efforts will backfire. What regulators see as "junk fees" often serve valid economic functions: enabling companies to manage risk, deterring risky customer behavior, and keeping base prices low. By contrast, interfering with how companies price their services threatens to: - Reduce access to credit and banking services for lower-income Americans - Make services like cable and broadband more expensive upfront - Increase airfares by forcing airlines to bundle baggage fees Another recent effort by the Consumer Financial Protection Bureau will cap credit card late fees at $8. That may save some money for those who pay late, but will mean higher costs and tighter credit for everyone else. The CFPB even admits "cardholders who never pay late will not benefit from the reduction in late fees and could pay more." Well-intentioned as they may be, these efforts to dictate pricing models undermine the market mechanisms that create efficiency and value. Policymakers should educate consumers about the benefits of differentiated pricing, not restrict it! Check out the full column for more on the White House's war on "junk fees." https://lnkd.in/e4kQAdZm

The U.S. government on Tuesday announced it would sharply limit the fees that credit card companies can charge customers who fall behind on their bills, aiming to cap the penalties at $8 in a move that is expected to draw fierce resistance from financial giants. The rules arrive as part of a suite of fresh federal efforts to promote competition and crack down on unfair or illegal pricing across the economy, which President Biden has blasted as one of the primary sources of rising costs facing American families over the past year. Under the new regulations, credit card issuers including Bank of America, Capital One, Citibank and JPMorgan Chase cannot charge more than $8 for a late payment unless they can explicitly point to data showing they must impose higher fees to make up for losses. In issuing the restrictions, the Consumer Financial Protection Bureau said the government intends to close a legal loophole that had allowed some financial giants to charge an average of $32 per month for a missed or late payment. The amount has proved onerous for some cash-starved cardholders, while enriching the credit card industry, which reaped more than $14 billion in revenue from late fees in 2022, according to the CFPB. “We have seen the junk fee era really creep across so many sectors of the economy, and across the government. We’re just trying to make sure consumers and small businesses and workers are getting a fair shake wherever they go,” said Rohit Chopra, the agency’s director, on a call previewing the announcement with reporters. The policy is set to take effect later this spring, and it could save cardholders about $10 billion each year, according to the bureau, which estimates that about 45 million people have faced such fees. But its fate remains unclear, because the banking industry is expected to sue the CFPB, adding to the agency’s legal woes as the Supreme Court is weighing the future of its funding and regulatory powers in a separate pending case. “While the administration is messaging this rule as a ‘win’ for consumers going into an election year, it’s anything but,” said Lindsey Johnson, the president of the Consumer Bankers Association, whose board of directors includes executives from Bank of America, Chase and Wells Fargo. “By normalizing being late on credit card payments, the Administration is knowingly putting consumers’ financial health at risk.”

"Every person who has a checking or a savings account should hear about this." -Erin Macey, Director of the Indiana Community Action Poverty Institute "This" is impending legislation that seeks to limit Indiana residents' rights while enhancing protections and revenue for financial institutions. "On a very basic level, banks and credit unions are being sued over their overdraft fees," said Macey. "Rather than let that play out in the courts, they are going to the legislature to permanently take away consumer protections." #HouseBill1284 would allow banks to slip clauses that change the terms of service into customers' monthly statements, and absolve institutions from seeking consumers' acknowledgement of these terms before going into effect. #SenateBill188 seeks to shorten the time Indiana residents have to sue a financial institution – from six years to two – and cap the amount consumers can receive from a settlement. Encourage your Indiana State Representatives to vote NO on both #HouseBill1284 and #SenateBill188. Find your reps contact info online at https://lnkd.in/g7-jsWjA.

Last week, U.S. Senator Mark Warner introduced the Discount Window Enhancement Act of 2024, aiming to modernize the Discount Window. I recently discussed the need for this modernization in an article for Law360 and Law360 UK. The proposed legislation directly addresses key points highlighted in my article. Check out the article here: (https://lnkd.in/eu6axCF8) and a summary of the legislation here: (https://lnkd.in/euUAkQBe). Your thoughts and experiences on the Discount Window are invaluable as I will be delving further into this critical topic in upcoming pieces. Please feel to comment and/or DM me. #RegulatoryCompliance #BankingRegulations #DiscountWindow #RiskManagement #FinancialRegulations #RegulationA #SenatorMarkWarner #FinanceLegislation