Biden administration finalizes rule cutting credit card late fees

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Biden administration finalizes rule cutting credit card late fees
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The move is expected to drop the typical credit card late fee to $8 from $32

President Joe Biden meets Italian Prime Minister Giorgia Meloni in the Oval Office of the White House, Friday, March 1, 2024, in Washington.The financial regulator estimates the move will save American families $10 billion every year -- an average savings of $220 annually for more than 45 million people who are charged late fees when they don't pay their statements by the due date.

“The rule’s policy goals are, at best, consumer redistribution, not consumer protection," the Consumer Bankers Association, which represents banks and credit card issuers, said in a statement. President Joe Biden is expected to highlight the rule being finalized when he meets with his Competition Council on Tuesday, along with a handful of other actions he's taking to try to lower costs and to sell his economic policies as benefitting Americans ahead of November's election.

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