CFPB finalizes rule slashing credit card late fees from $32 to $8 saves Americans $10 billion

The Consumer Financial Protection Bureau finalizes a rule reducing the maximum credit card late fee from an average of $32 to $8, saving approximately 45 million Americans who pay late fees an estimated $10 billion per year, about $220 per year per affected cardholder. CFPB Director Rohit Chopra calls the old fees a "junk fee" business model that preys on consumers. The rule is announced alongside Biden's launch of a new "Strike Force on Unfair and Illegal Pricing" at the FTC and DOJ. The credit card industry immediately sues to block the rule. A federal court in Texas issues a preliminary injunction halting it pending litigation. The administration estimates junk fee elimination efforts broadly would save Americans over $20 billion annually.