Banks have been raising interest rates on credit cards for years, and some are lifting them higher still to recoup the revenue they fear losing from a new cap on late fees. That means cardholders struggling to pay their bills might not see much relief, if any, even with the Federal Reserve expected to continue lowering rates.
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Carrying a credit-card balance has gotten way more expensive
Whether the $8 late-fee cap ends up weighing on card issuers’ results could hinge on the presidential election. The CFPB would be more likely to keep pushing for it if Democratic candidate Kamala Harris were to win, wrote TD Cowen analyst Jaret Seiberg in a note.
