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President Joe Biden Announces Cap of All Credit Card Late Fees at $8

AP Photo/Keith Srakocic, File

President Biden sure is looking out for the little guy with his war on junk fees and "shrinkflation." He's going to eliminate those junk fees on concert ticks, cap penalties for overdrawing your bank account, and make sure that Cookie Monster gets the same number of cookies he paid for. Meanwhile, as we reported last August, the Federal Reserve announced that Americans had aggregated more than $1 trillion of credit card debt for the first time ever under Bidenomics. Why doesn't Biden just forgive credit card debt if he can forgive student loans despite the Supreme Court's ruling?

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The Biden administration announced Tuesday that it was going after more junk fees, capping late payment charges on credit cards at $8.

CBS News reports:

The Biden administration announced a rule Tuesday to cap all credit card late fees at $8, or about one-quarter of the average late fee of $32. It's the latest effort from the White House to attack what it calls "junk fees," or excessive fees that can push up the end price of products.

The Consumer Financial Protection Bureau's new regulations will set a ceiling of $8 for most credit card late fees, or require banks to show why they should charge more than $8 for such a fee. The effort will save Americans up to $10 billion a year, the agency estimates.

The push comes a year after President Joe Biden vowed to ban junk fees in his 2023 State of the Union address, calling them "unfair." Junk fees generate big money for businesses, ranging from airlines to financial services firms, with consumers paying at $90 billion annually in excessive charges, the White House said on Tuesday.

Maybe the Biden administration could look into why more Americans have turned to credit cards to cover the basics under his administration.

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Yes, that.

It's hard to say who wants to have complete control of the private sector, Biden or Sen. Elizabeth Warren. They'd both end the price-gouging and corporate greed that just happened to appear when Biden took office.

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Credit card late fees are the number one issue for voters in 2024.

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