From CNBC: 2025-05-07 07:00:00

Last year, banks raised interest rates and added new fees on credit cards due to a Consumer Financial Protection Bureau rule. Even after the rule was overturned in federal court, major players like Synchrony and Bread Financial are keeping the higher rates in place, leading to concerns about consumer impact.

The proposed CFPB regulation aimed to limit credit card late fees, but industry leaders successfully fought against it in court. Retail cards, with record high interest rates, are crucial for popular American retailers like Amazon and Macy’s, generating significant profits despite concerns of consumer burden.

Retail cards, which are often used by financially struggling Americans, have higher interest rates than general-purpose cards. Banks like Synchrony and Bread Financial may not roll back rate increases, taking advantage of those who rely on store cards but may not qualify for other credit cards.

Synchrony’s CEO revealed that borrowers didn’t react strongly to the rate hikes on retail cards last year, prompting the bank to maintain the higher rates. Financial coach Alaina Fingal warns of the debt spiral caused by using retail credit cards, urging caution with promotional offers and deferred interest clauses to avoid financial hardship. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by over 500 points. This decline was attributed to concerns about rising inflation and the potential for interest rate hikes by the Federal Reserve.

2. In international news, tensions are escalating between Russia and Ukraine as Russian troops continue to gather along the border. The United States and European Union have expressed support for Ukraine, urging Russia to de-escalate the situation.

3. A new study has found that the COVID-19 vaccine developed by Pfizer and BioNTech is highly effective at preventing severe illness and death from the virus. The study also showed that the vaccine provides strong protection against the Delta variant.

4. The Tokyo Olympics are set to begin this week, with athletes from around the world gathering to compete in various events. The Games will be held without spectators due to concerns about the spread of COVID-19.

5. In tech news, Apple has announced the release of its new iPhone 13, featuring improved cameras, faster processors, and longer battery life. The company also unveiled new updates to its Apple Watch and iPad models.

Read more: Banks keep high rates inspired by now-dead CFPB rule