Consumer Financial Protection Bureau Finalizes Rule to Reduce Credit Card Late Fees by 75%

Tuesday, 5 March 2024, 14:44
The Consumer Financial Protection Bureau has implemented a new rule aimed at reducing credit card late fees, which are estimated to save U.S. consumers over $10 billion annually. Despite opposition from industry groups and Republicans, consumer advocacy organizations have praised the rule for its benefits to economically vulnerable families. The move is part of a broader initiative by the Biden administration to crack down on excessive fees in the financial sector, signaling a significant change in the credit card industry landscape.
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Consumer Financial Protection Bureau Finalizes Rule to Reduce Credit Card Late Fees by 75%

Consumer Financial Protection Bureau Rule

The Consumer Financial Protection Bureau (CFPB) finalized a rule Tuesday to limit late payment fees issued by credit card companies, a move the agency says will reduce the typical fee by 75 percent and save U.S. consumers an average of $220 per year.

Impact of the Rule

  • The rule will save Americans more than $10 billion in late fees each year.
  • The White House viewed the new rule as part of a wider initiative to curb 'junk fees' in the financial sector.
  • Opposition from industry groups and Republicans highlights the controversy surrounding the rule change.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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