WASHINGTON (AP) ? The Obama administration's consumer financial watchdog agency is backing off a plan to limit big upfront fees on credit cards, a move that could hit borrowers with poor credit histories especially hard. The Consumer Financial Protection Bureau acknowledged Thursday that its proposal would increase costs for some cardholders and allow banks to charge more in fees. Thursday's decision shows the difficult line the young agency must walk, allowing banks to make enough money so that they can continue to offer loans and cards while protecting consumers from fees that it considers abusive or deceptive. First Premier Bank of Sioux Falls, S.D., had argued that the Fed overstepped when it proposed the tougher rule. High-fee, low-limit cards like First Premier's are available mainly to people with weak credit histories, said Chi Chi Wu, an attorney with the National Consumer Law Center, which has urged CFPB to fight the court ruling. By tipping the rule in favor of banks, the agency is showing that it takes both businesses and consumers into account when setting policy, said Mark Williams, a former examiner for the Federal Reserve who teaches finance at Boston University.
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