On this edition of Your Call, we discuss credit card debt in the US, which collectively stands at over $1 trillion.
Conversations about credit card debt are often framed as a result of personal choices, but major credit card companies often use manipulative tactics to keep people in debt.
President Biden, a former ally to the powerful credit card industry, recently moved to cap late fees at no more than $8 a month, down from an average $32, according to the AP. Last month, a federal judge in Texas appointed by Donald Trump halted the new rule from taking effect, which was a major victory for companies like Visa and JPMorgan Chase. Banks brings in $14 billion in credit card late fees every year, according to the Consumer Financial Protection Bureau.
What will it take to reign in this profitable industry?
Guest:
Arjun Singh, senior podcast producer for The Lever
Resources:
The Lever: Credit Card Companies Want To Keep You In Debt Forever
CNN: Judge blocks Biden administration rule capping credit card late fees at $8
Common Dreams: New Rule Under Biden Would Save Americans $10 Billion a Year in Credit Card Fees
CFPB: CFPB Report Highlights Consumer Frustrations with Credit Card Rewards Programs
The American Prospect: What We Owe: The big banks behind the rising cost of credit
Reuters: US consumer watchdog to examine credit card rewards, 'buy-now, pay-later' companies
USA Today: Bernie Sanders, AOC unveil legislation to cap credit card interest at 15%
