By Josh Wingrove and Paige Smith | Bloomberg
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.
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.
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The measure is one of several to be announced at a Tuesday meeting of the White House Competition Council. The administration also announced it had 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.
“Some corporations are tacking on extra fees, hiding costs and sometimes even breaking the law,” National Economic Council Director Lael Brainard said Monday on a call with reporters. “The president is committed to lowering costs for hardworking Americans who pay too much for groceries, banking, airfare and basic utilities.”
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Biden launched his competition council as his administration struggled to contain inflationary pressures. Biden has built much of his 2024 reelection pitch around efforts to lower everyday costs for middle-class and working-class families, and the bundle of announcements Tuesday will be touched on in Thursday’s State of the Union speech.
Late fees
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.
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If implemented as…
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