The Obama administration's consumer financial watchdog agency is backing off a plan to limit big upfront fees on credit cards. The Consumer Financial Protection Bureau acknowledged Thursday that its proposal would increase costs for cardholders and allow banks to charge more in fees.
Harvard Law professor Elizabeth Warren announced early Friday that she had accepted an advisory role with the newly created U.S. consumer protection agency. The move comes despite fierce opposition from the financial industry.
The White House is exploring ways that Warren could run the bureau without having to go through a confirmation battle, leading to reports that Obama will use a recess appointment. But that would last only until the end of 2011.