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White House plan to curb credit-card late fees in Texas judge’s hands
A Texas judge is set to rule on whether to block new government rules sharply limiting credit card late-payment charges, a centerpiece in the Biden administration’s efforts to clamp down on “junk” fees.
The regulations, adopted by the Consumer Financial Protection Bureau in March, would cap late fees for credit card payments at $8, a fraction of late charges that can top $30. Although a bane for consumers, the fees generate about $9 billion a year for card issuers, according to the agency.
Judge Mark Pittman of the U.S. District Court for the Northern District of Texas was given a May 10 deadline to decide whether to grant an injunction sought by the banking industry and other business interests preventing the restrictions now scheduled to take effect on May 14.
After the CFPB on March 5 announced the ban on what it called “excessive” credit card late fees, the American Bankers Association and U.S. Chamber of Commerce filed a legal challenge.
Tobin Marcus, lead policy analyst at Wolfe Research, thinks the industry will succeed in stalling the rule, setting up what could be a protracted trial ahead of a final ruling in court on . “Our expectation is that [Judge Pittman] will grant the motion for a preliminary injunction,” he said.
“Then there’s the longer process of having a trial in service of a final decision,” the analyst added.
Both the Chamber of Commerce and the CFPB on Friday declined to offer comment.
As the legal battle plays out in court, credit card issuers are mapping out ways to counter what they expect to be a sharp drop in fee revenue, including potentially hiking interest rates or adding fees for other services.
According to consumer advocates that support the CFPB’s late-fee rule, card issuers hit customers with $14 billion in late-payment charges in 2019, accounting for well over half their fee revenue that year. Financial industry critics say such late fees target low- and moderate-income consumers, in particular people of color.
“The CFPB’s March 2024 rule sets reasonable limits on credit card late fees, ensuring that consumers are not unfairly penalized for minor delays in payment,” a coalition of 90 national and state advocacy groups said in an April 24 letter to lawmakers. “By capping late fees at no more than $8, and eliminating automatic further fee increases tied to inflation, the rule addresses the predatory practices that have allowed credit card companies to take billions of dollars from hard-working Americans through back-end fees.”
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Famed Russian chef, a Putin critic who owned a restaurant in London, found dead in Belgrade
A famed Russian chef who has been highly critical of Moscow’s war in Ukraine has been found dead while on a visit to Serbia’s capital, according to several sources on Wednesday.
The death of Alexei Zimin, who has been based in London for years, marks the latest passing of a Russian expatriate critical of the Kremlin’s war.
Zimin co-founded the ZIMA restaurant in London, served as senior contributor in numerous magazines and has co-authored several books, according to a ZIMA Instagram post.
His body was found late on Tuesday in a flat that he was renting in Belgrade while on a visit to promote his latest book, “Anglomania,” a source close to the investigation told AFP.
Prosecutors told CBS News’ partner network BBC News that the flat was locked from the inside and the death did not appear to be suspicious, but that an autopsy was due to take place.
Born in Russia in 1971, Zimin had opened several restaurants in Moscow before leaving after Russia occupied Ukraine’s Crimea peninsula in 2014.
After Russia invaded Ukraine in February 2022, he posted anti-war messages and stopped his Saturday cooking show on a pro-Kremlin television station.
“Throughout his remarkable life, Alexei accomplished a lot – he served as deputy editor-in-chief of Afisha magazine, founded Afisha.Food, also worked as editor-in-chief of Afisha World, GQ, and Gourmet,” his London restaurant ZIMA said in an Instagram post on Wednesday.
“He hosted several culinary shows, authored numerous books, and launched multiple successful restaurants,” it said.
“To us, Alexei was not only a colleague but also a friend, a close companion with whom we shared many experiences – good, kind, and at times sorrowful.”
In May 2022, Zimin told the BBC his restaurant had been targeted with abuse and arson threats after Russia’s invasion.
“My partners thought about changing the name,” he said at the time.
Dozens of Vladimir Putin’s enemies have suffered mysterious deaths in Russia and Europe and Matt Olsen, head of the National Security Division at the Justice Department, told “60 Minutes” that he is concerned Russia’s reach could extend into the U.S.
There have been falls from windows, poisonings and unsolved shootings outside the U.S., among other suspicious deaths. Inside the U.S., there have been attempts to interfere in elections, cyber attacks and actions putting critical infrastructure at risk, Olsen said.
“I don’t think Putin is trying to hide his hand. I think quite the opposite,” Olsen said. “I think … they’re going after their critics: both to eliminate the critics but also to send a stark and chilling message.”