Biden Caps Credit Card Late Fees at $8, Saving Americans Billions
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The Biden administration announced a new rule to cap credit card late fees at $8, which is expected to save Americans up to $10 billion per year.
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The average credit card late fee currently sits at $32, bringing banks about $14 billion in revenue annually.
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The move is part of Biden's push against "junk fees" in various sectors like groceries, healthcare, and financial services. A new federal strike force will target illegal and unfair pricing.
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The administration estimates its efforts will eliminate $20 billion in yearly junk fees overall. However, only 34% of Americans approve of Biden's economic leadership.
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Americans currently owe over $1 trillion in credit card debt, a record high, with delinquencies starting to trend upward as inflation hurts poorer households.