The Consumer Financial Protection Bureau announced on Tuesday a new rule to force most banks to cap credit card late fees at $8.
The CFPB, which under President Joe Biden has also gone after “junk” fees charged by financial institutions, said that by finalizing the latest rule, it is closing a “loophole exploited by large credit card issuers.”
The CFPB said that fees cost consumers some $14 billion per year and that the new rule would go far toward curbing that, saving consumers an estimated $10 billion annually.
“Because banks are allowed to charge fees far in excess of costs, the current rule means large banks profit when borrowers inadvertently miss a payment or struggle to pay on time, and many do, repeatedly,” CFPB Director Rohit Chopra said.
Legislation passed in 2009 mandated that credit
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