"Biden Administration Caps Credit Card Late Fees at $8 and Launches Task Force to Crack Down on Unfair Pricing"

The Biden administration has finalized a new rule capping all credit card late fees at $8, estimated to save American families over $10 billion annually, with the rule applying to the largest credit card issuers covering 95% of outstanding credit card balances. This move is part of a broader initiative to limit hidden surcharges and reduce costs for consumers amidst high inflation. While praised by the Consumer Financial Protection Bureau, major financial institutions have criticized the rule, warning of potential negative impacts on competition, credit access, and consumer costs.