Effective Date for Late-Fee Ban Set for May

Publication in the Federal Register today sets the effective date for the CFPB credit-card late fee regulation (see FSM Report CREDITCARD37) as May 14, 2024.  The rule sets a controversial $8 safe harbor for late fees by larger issuers and mandates a stringent fee-calculation methodology for smaller issuers.  The Bureau did, however, forbear setting limits on other card fees such as those associated with over-limit purchases.  Litigation contesting the rule is already in the works along with a GOP resolution to overturn it.

Vance Goes for Nuclear Financial-Market Option vs. China

Sen. Vance (R-OH) has introduced S. 3945, a bill to ban China and entities it governs from U.S. capital, bond, and financial markets if Treasury determines that it has engaged in sovereign-debt restructuring in violation of global law and financial-market practice.  The goal here is clearly to force China to cease the practice of throwing emerging-market debtors into default on debt it has extended while securing repayment or other beneficial treatment for itself.