(TheConservativeTimes.org) – A new regulation put in place could make credit cards have a late fee cap of just $8.
A credit card cap of only $8 is much less than the average late fee of $32. The White House calls these fees “junk fees” and this new regulation from the Consumer Financial Protection Bureau will cap them at $8. Banks can show proof as to why they should charge more than the current cap if they feel the need to.
President Joe Biden previously said he would ban junk fees in 2023 saying that they were “unfair.” Junk fees are generating about $90 billion in excessive charges annually from consumers.
Rohit Chopra, director of the CFPB said, “In credit cards, like so many corners of the economy today, consumers are beset by junk fees and forced to navigate a market dominated by relatively few, powerful players who control the market.”
Along with this new regulation, Biden is creating a new strike force that will be focused on unfair or illegal pricing on necessary items, like groceries, prescriptions, healthcare, and housing. There is a lot of pressure as inflation, although lower than it was during the pandemic, is still high compared to prices before the pandemic.
“President Biden is in the fight for the long haul when it comes to lowering prices for American consumers,” Lael Brainard, director of the National Economic Council said.
An analysis said that per Biden’s plans for the economy and pricing, the efforts would eliminate $20 billion in junk fees annually.
There’s been a growing concern over high credit card debt and bills for Americans as credit card debt has just reached an all-time high. Americans are not paying their bills on time and it’s leading to late fee charges and high interest rates.
Copyright 2024, TheConservativeTimes.org
