March 5, 2024
Washington, D.C. — Frontiers of Freedom President George Landrith today issued the following statement in response to the CFPB announcing a finalized proposal to impose a severe new government-imposed price control on credit card late fees today:
“What problem does the CFPB think it’s solving by using the force of government to decrease late fee payments a whole 75 percentage points? As Milton Friedman used to say, there’s no such thing as a free lunch — with price controls, someone always has to pay. In this case, that person will be the average Joe on Main Street because the community banks this rule will affect most will have no choice but to tighten low-income Americans’ balance limits and increase their account restrictions or else go bankrupt. If consumers are unhappy with the fee structure, they can shop around. But government price controls always have significant costs and negative impacts. The marketplace and competition do a better job of serving the needs of consumers than government mandated price controls. Republicans on the Financial Services Committee, especially Chairman Patrick McHenry (R-NC), must fight this counterproductive rule tooth and nail.”
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