President Joe Biden’s administration is announcing a final rule curtailing credit card late fees, one of a series of steps to try and drive down everyday costs for households that are weighing on his approval rating as he seeks reelection, Bloomberg News reported. The Consumer Financial Protection Bureau estimates its move to slash credit card late fees would save an average of $220 per year for 45 million people who incur such penalties. Currently, firms can charge $30 for a first missed payment, and up to $41 if a consumer misses a second payment within six months. The new rule, first proposed in February 2023, would now cap late fees at $8, unless a company can prove a higher fee is necessary to cover payment collection costs. If implemented as proposed, Bloomberg Intelligence analysis predicts credit card issuers could lose as much as $9 billion of their annual $12 billion in late fees. The measure is one of several announced at a Tuesday meeting of the White House Competition Council, where Biden spoke. The administration also said it finalized a rule intended to help farmers and ranchers against deceptive practices by meat processors, and a new effort by the Justice Department and the Federal Trade Commission to fight deceptive pricing practices.
