From CNBC:

The Consumer Financial Protection Bureau introduced a new rule capping late fees at $8 per incident, potentially saving over 45 million card users $220 annually. Director Rohit Chopra criticized credit card companies for exploiting consumers and hailed the rule as the end to excessive fees hidden behind inflation excuses.

President Joe Biden continues his fight against “junk fees” with the CFPB’s new late fee regulation that seeks to protect consumers from billions siphoned by credit card giants. The rule, effective 60 days after publication, affects ratings, not interest rates, and triggered opposition from industry groups like the American Bankers Association.

The rule comes after data review indicated card issuers have been increasing late penalties since 2010, hitting over $14 billion in 2022. The measure targets card users with lower credit scores, who pay an average of $138 annually in late fees. Some industry groups criticize the CFPB’s rule, claiming it prioritizes headlines over legal processes.



Read more: CFPB rule caps credit card late fees at $8