New 'Junk Fee' Rule Caps Credit Card Late Fees At $8
The government's consumer watchdog finalizes a banking rule that is expected to save consumers $10 billion a year. The Chamber of Commerce threatens to sue.


The Consumer Financial Protection Bureau (CFPB) has finalized a rule that limits the typical credit card late fee from $32, to $8.
The rule, which was proposed in early 2022, closes a loophole exploited by large credit card issuers and applies to issuers with more than one million open accounts, the CFPB said. This translates into more than 95% of total outstanding credit card balances. Data shows that smaller issues tend to have lower rates and fees, it added.
Reducing the late fee to $8 will save consumers $10 billion a year, or an annual average of $220 for each of more than 45 million people, the Biden administration said in a statement today (March 5) in announcing several initiatives aimed at fighting junk fees.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The rule immediately met with criticism from several groups including the U.S. Chamber of Commerce, which said it plans on filing a lawsuit against the CFPB to block the rule.
"The agency’s final credit card late fee rule punishes Americans who pay their credit card bills on time by forcing them to pay for those who don’t," the Chamber said in a statement.
The CFPB move builds off of steps it has already taken in the banking sector as part of the administration's war on junk fees. In January, for example, the agency proposed curbing bank overdraft fees. It has also fined several financial institutions in the last year, such as Bank of America, over junk fees.
The final rule does not affect the ability of large credit card issuers to raise interest rates, reduce credit lines and take other actions to prevent late payments, the CFPB said. “In fact, the rule would increase the desire for credit card companies to facilitate on-time payment, since it would lower incentives to build a business model on late fees,” the agency added.
New strike force to fight unfair pricing
The administration also announced the launch of a new strike force, co-chaired by the Department of Justice and Federal Trade Commission, to crack down on unfair and illegal pricing tactics by corporations that “try to rip off Americans." The strike force will focus on key sectors including prescription drugs and health care, food and grocery, housing as well as financial services.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
Quiz: Test Your Knowledge of the OBBB, Wealth Transfer and Early Retirement
Quiz The financial professionals who contribute to Kiplinger's Adviser Intel recently wrote about the OBBB's impact on retirement, how to ensure your wealth passes to your family and early retirement questions.
-
T-Mobile's Free iPhone 17 Deal: A Smart Switch or a Hidden Catch?
Receive a free iPhone 17 when you switch to T-Mobile. We'll explain whether the deal is worth it.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Confused About the New COVID Vaccine and Medicare? What You Need to Know
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on Retirement
While some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
How to Plan Your First International Trip After Retirement
Retirement paves the way for a world of exciting (and intimidating) experiences. An overseas journey can be an ideal way to embrace this new phase of life.
-
My First $1 Million: Retired Magazine Editor, 70, Boise, Idaho
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.