"Biden Administration Implements $8 Cap on Credit Card Late Fees, Sparks Industry Backlash"

The Biden administration has implemented a new rule capping credit card late fees at $8, a move that has sparked strong opposition from banking and credit card companies. Critics argue that the rule will reduce competition, increase the cost of credit, and ultimately harm consumers by leading to more late payments, higher debt, lower credit scores, and reduced credit access for those who need it most. The Consumer Financial Protection Bureau estimates that the new regulation will save American families more than $10 billion in late fees annually, but major financial institutions and legislators have slammed the rule, warning of its potential negative impact on consumers.