"Biden's $8 Cap on Credit Card Late Fees Aims to Ease Financial Burden on Americans"

The Consumer Financial Protection Bureau (CFPB) has finalized a rule capping credit card late fees at $8 per incident, down from an industry average of $32, in an effort to eliminate "junk fees" and save consumers over $10 billion annually. This new regulation closes a loophole that allowed automatic fee increases without evidence of increased costs, and is part of the Biden administration's push to curb unnecessary charges. While this move benefits consumers, credit card issuers may respond by raising other fees or tightening card approvals.