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ReadersSpeak

A drop from $32 to $8, who will pay the difference? will increase interest rates and others will decrease
rewards. "Mind you, they won't apply these changes over
We wish to thank Ken Musante for sending in the the entire portfolio. Instead, they will apply it to the swath
following in response to news that the cost of a late credit of the portfolio where the late fees are being driven: the
card payment could soon be going down: "Seems like good folks at the lower end of the socio-economic spectrum to
news right?" he wrote. "The reason, however, is misguided make up for having to provide specific services 'at cost.'
and suboptimal (a word I use when I think 'freakin' crazy Consequently, if you were less well off, but paid your bills
may offend some people.) Federal regulators issued a new on time, you would likely now have to compensate fellow
rule March 5, 2024, capping credit card late fees at $8, cardholders who failed to do so.
down from the current average of $32.
It would be ironic if issuers pushed to increase interchange
"Why $8? Well, this is thought to be the cost of collecting to make up for the decrease in late fees. Legislatures are
on an overdue payment. I did not realize that we have loath to insert price controls on duopolistic and monolithic
moved so far that we must only price items at what their organizations that control interchange but feel comfortable
actual cost is. I will be sure to share this with my bartender doing so on late fees. If it weren't for the $15,000 I lost, I'd
the next time I receive a bill for a $20 drink! "Because the feel bad for the banks. The U.S. Chamber of Commerce
rule only applies to large issuers, with more than 1 million said the CFPB had gone too far with the new cap on late
cards outstanding, no one will complain much. Nobody fees, which is supposed to take effect 60 days after March
likes banks. The Great Recession exposed what evil- 5. 'The agency's final credit card late fee rule punishes
doers they are. And 2023 exposed how fast some of the Americans who pay their credit card bills on time by
most revered banks could dissolve in a puddle. "I didn't forcing them to pay for those who don't,' said Neil Bradley,
believe it could happen. I speculated and lost $15,000 in executive vice president of the chamber. Have we gone too
First Republic stock. I still own the shares. They are worth far or am I old and cranky?
$28.59. I'm unsure why they are still trading and who
would even buy them but I'm holding to the end. Regulation in card issuing and acquiring

"Rent control decreases the supply of housing. All else Do you feel there's a place for regulation in the electronic
being equal, price controls on credit will limit the supply payments industry? If so, what makes sense to you, and
of credit. 'All else' is never equal, however. Card issuing why? Email us at greensheet@greensheet.com to share your
banks are not about to earn less on their portfolios. Some opinions.