Credit card late fees capped at $8 as part of Biden crackdown on junk fees

New York (CNN) – Federal regulators finalized a rule on Tuesday to cap most credit card late fees at $8 as part of a broader push by the Biden administration to eliminate junk fees. The Consumer Financial Protection Bureau estimates the new regulation, first proposed in February 2023, will save families more than $10 billion a year by cutting fees from an average of $32. Related Stories The new rule applies to large credit card issuers – those with more than 1 million accounts. These companies represent more than 95% of total outstanding credit card debt, according to the CFPB. The new push to target credit card fees comes as the White House aims to show it is taking action to help families hurting from the high cost of living. The CFPB also proposed a rule in January that would curb excessive overdraft fees. It also comes as Americans continue to pile on credit card debt, which recently exceeded a record $1.1 trillion. Some borrowers, especially Millennials and those with lower incomes, have been falling behind on their credit card debt following more than two years of high inflation. More than 45 million people are charged late fees on credit...