Regulator would cap credit card late fees at $8, part of Biden's campaign against junk fees
President Joe Biden speaks in the East Room of the White House, Feb. 23, 2024, in Washington. Biden is forming a new "strike force" to crack down on illegal and unfair pricing on things like groceries, prescription drugs, health care, housing and financial services. (AP Photo/Evan Vucci, File)
WASHINGTON (AP) — The Biden administration announced a rule Tuesday to cap all credit card late fees, the latest effort in the White House push to end what it has called junk fees and a move that regulators say will save Americans up to $10 billion a year.
The Consumer Financial Protection Bureau's new regulations will set a ceiling of $8 for most credit card late fees or require banks to show why they should charge more than $8 for such a fee.
The rule would bring the average credit card late fee down from $32. The bureau estimates banks brought in roughly $14 billion in credit card late fees a year.
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