Biden Caps Credit Card Late Fees at $8 to Save Americans Billions
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Biden administration announced a rule to cap credit card late fees at $8, down from current average of $32. Estimated to save Americans up to $10 billion a year.
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Effort is part of Biden's push against "junk fees" he says companies use to pad profits. Also formed a strike force to crack down on unfair pricing.
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Consumer Financial Protection Bureau estimates banks collect $14 billion a year in credit card late fees, 5 times what it costs to collect late payments.
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Banking industry and Republicans criticize the move, saying it will raise costs for responsible borrowers and decrease access to credit cards.
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Americans holding over $1 trillion in credit card debt, a record high, even as delinquencies start rising. Signals financial stress, especially for poorer households.