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U.S. caps credit card late charges in new Biden crackdown on junk fees

The U.S. government announced Tuesday it would sharply limit the fees that credit card companies can charge customers who fall behind on their bills, aiming to cap the penalties at $8 in a move that immediately drew fierce resistance from financial giants.

The rules arrived as part of a suite of fresh federal efforts to promote competition and crack down on unfair or illegal pricing across the economy, which President Biden has blasted as one of the primary sources of rising costs facing American families over the past year.

Under the new regulations, credit card issuers, including Bank of America, Capital One, Citibank and JPMorgan Chase, cannot charge more than $8 for a late payment unless they can explicitly point to data showing they must impose higher fees to make up for losses.


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