Regulator Would Cap Credit Card Late Fees At $8, Part Of President Biden’s Campaign Against Junk Fees
March 5, 2024 8:07AM PST
FILE – Credit cards as seen July 1, 2021, in Orlando, Fla. Many Americans say their household expenses are outpacing earnings in 2023 according to a new poll from AP-NORC Center for Public Affairs Research. (AP Photo/John Raoux, File)
NEW YORK (AP) — A Republican senator is criticizing the Biden administration’s move to cap credit card late fees at $8.
It’s the latest effort in the White House push to end what it calls junk fees and is a move regulators say will save Americans up to $10 billion a year.
The Consumer Financial Protection Bureau says the average credit card late fee is $32.
President Joe Biden plans to highlight the proposal and other efforts to reduce costs to Americans at a meeting of his competition council on Tuesday.
GOP Sen. Tim Scott of South Carolina says the cap on credit card late fees will ultimately raise rates for many borrowers.
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