The White House is gearing up for a battle with congressional Republicans over credit card fees as part of its broader message on controlling costs for consumers.
Tuesday’s announcement of a Consumer Financial Protection Bureau final rule designed to limit the late fees charged by major credit card lenders to about $8 was just one of many pegged to a meeting of President Joe Biden’s Competition Council ahead of Thursday’s State of the Union address, but it sets up one of the most obvious contrasts with Republicans on Capitol Hill.
The rule “will help stop some credit card companies from ripping you off with late fees,” Biden said, adding that current law says banks are only supposed to charge consumers what it costs to collect the late payment. “But we estimate banks are collecting five times more in late fees than it costs to collect late payment.”
