Facing a lawsuit, Biden backs plan to cap credit card late fees
Newsy
Hours before President Biden's State of the Union address, the banking industry sued the government over a proposed late fee cap of $8.
During Thursday's State of the Union address, President Joe Biden said he backs the Consumer Financial Protection Bureau's proposal to cap credit card late fees to $8 per missed payment.
The CFPB’s proposed rule would also limit late fees to 25% of the required minimum payment.
The rule will go through a period of public feedback before being implemented by the Biden administration.
"The banks and credit card companies don’t like it. Why? I’m saving American families $20 billion a year with all of the junk fees I’m eliminating," President Biden said.
The banking industry has come out opposed to the proposal.
