"Biden Administration Takes Aim at Excessive Credit Card Late Fees, Caps Average Fee at $8"

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to cut excessive credit card late fees, estimating that American families will save over $10 billion annually by reducing the typical fee from $32 to $8. The rule applies to the largest credit card issuers and aims to end the automatic annual inflation adjustment for late fees, requiring issuers to prove that higher fees are necessary to cover actual collection costs. This effort is part of the CFPB's ongoing work to address issues in the credit card market, including high interest rates and illegal conduct by credit card companies.