Federal regulators issued a new rule Tuesday capping credit card late fees at $8, down from the current average of $32. The move is expected to save customers an estimated $10 billion a year. In 2022, late fees ranged from $30 for a first missed payment to $41 for subsequent payments.
While this new rule has been cheered by consumer advocates who argue that credit card companies already profit tremendously from high interest rates and other fees, opponents to the new rule fear that banks will raise other types of fees to make up for the lost revenue.
We will keep an eye to see if Federal Regulators will look into the raising costs and fees that merchants continue to pay year after year to process credit card payments.
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