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.

A consumer protection law book lays on a table with a gavel next to it.
(Image credit: Zerbor, Getty Images)

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.

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Joey Solitro

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.