Joe Biden calls on Congress to slash credit card late fees

(NewsNation) — President Joe Biden announced Wednesday new efforts to slash credit card late fees and drive down the prices that Apple Inc. and Google parent Alphabet Inc. allegedly charge on mobile app stores.

Biden called on Congress to pass legislation that would target hidden fees for consumer services on accommodation, concert tickets, mobile plans and plane tickets.

Officials said the move is part of a larger policy drive to promote competition in consumer markets.

The Consumer Financial Protection Bureau on Wednesday proposed a rule to ban “excessive” fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year.

“At the end of the day, we want to see a marketplace where Americans are treated fairly, prices and risks are clear upfront and where companies compete hard to win their customers’ business,” CFPB Director Rohit Chopra said to reporters.

The proposed rule would cap late fees on card payments at $8, estimating to save consumers a total of $9 billion in a year.

The rule could go into effect in 2024 after a comment period, according to Chopra.

Democrats are anxiously awaiting President Joe Biden’s formal decision on whether he will run for reelection. Democratic podcaster Chris Hahn argued during an appearance on NewsNation that Biden is in a strong position to run in 2024.

Reuters contributed to this report.

Your Money

© 1998 - 2023 Nexstar Media Inc. | All Rights Reserved.

Trending on NewsNation