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Credit Cards Cost Americans $130bn In 2022, Agency Says
The US Consumer Financial Protection Bureau (CFPB) has found that credit card companies charged consumers more than $105bn in interest and more than $25bn in fees in 2022.
Consumers who carried a balance paid about 20 percent of their average balance in interest and fees over the year, while cardholders with subprime scores paid 30 to 40 cents in interest and fees per dollar.
Total outstanding credit card debt exceeded $1trn for the first time since the CFPB began collecting this data, the agency said.
It noted that the remarkable profits, which surpass pre-pandemic levels, “potentially signal a lack of competition in a market consistently dominated by the top 10 credit card companies”.
In a biennial report to Congress, the CFPB also raised concerns that nearly one-tenth of credit card users have “persistent debt”, where they are charged more in interest and fees than they pay toward the principal.
Klarna Staff Threaten Strike Over Salary Audit
Swedish staff at Klarna, the multinational buy now, pay later (BNPL) firm, have threatened to go on strike over the right of employees to an annual salary audit.
Two of Sweden’s trade unions, Unionen and Swedish Engineering, handed a strike notice to Klarna on Thursday (October 26) last week. If talks fail, then staffers at the fintech giant could walk out on November 7.
According to Unionen, work to reach an agreement with Klarna has been going on for several years, and a collective agreement has been on the table since April.
“It is deeply regrettable that Klarna's management does not listen to the employees' needs and desire to participate in decision-making processes at the company and have the right to an annual salary audit,” Unionen said in a statement.
“It feels surprisingly out of date for a company that wants to appear modern.”
Taiwan Passes First Reading Of Major Crypto Regulation
Taiwan’s Legislative Yuan has passed the first reading of a new bill that seeks to introduce a comprehensive regulatory framework and strengthen oversight of the crypto industry.
The Virtual Asset Management Bill was co-authored by 17 lawmakers and was introduced by Chiang Yung-chang, a member of the ruling Democratic Progressive Party (DPP).
If adopted, the bill will mean all virtual asset platforms that wish to operate in Taiwan will need to obtain a licence to do so.
They will also be subject to new rules on virtual asset listing criteria, separation of client funds, rules on fair advertising and marketing, and standards for information security and anti-money laundering (AML).
