"Biden Administration Caps Credit Card Late Fees at $8 in Crackdown on Excessive Charges"

The Biden administration has finalized a rule through the Consumer Financial Protection Bureau to reduce credit card late fees, estimated to save families $10 billion annually. The rule will cap late fees at $8, preventing automatic increases based on inflation and closing a loophole that allowed fees to balloon to $41. Industry groups representing banks and credit card issuers oppose the rule, arguing it could lead to increased interest rates. President Biden highlighted this effort, along with others, to lower costs for Americans ahead of the upcoming election and his State of the Union address.