The Biden administration has announced a new rule to cap all credit card late fees at $8, a move that is expected to save Americans up to $10 billion a year. The Consumer Financial Protection Bureau's regulations will set a ceiling for most credit card late fees, bringing the average fee down from $32. Director of the bureau, Rohit Chopra, stated that consumers are often burdened by junk fees in various sectors of the economy, including credit cards, and that this new rule aims to address that issue.

President Biden also highlighted efforts to reduce costs for Americans at a meeting of his competition council, where a new strike force was announced to crack down on illegal and unfair pricing in various industries. The White House estimates that these efforts will eliminate $20 billion in annual junk fees, with consumers currently paying about $90 billion a year in such fees.

However, the announcement of the new rule has faced criticism from some, including Sen. Tim Scott, who argued that capping credit card late fees could lead to higher interest rates and reduced access to credit for consumers. The American Bankers Association CEO, Rob Nichols, also expressed concerns about the rule, stating that late fees play a crucial role in promoting responsible consumer behavior.

Despite the pushback, the Biden administration remains committed to tackling junk fees and promoting greater competition within the economy. The Agriculture Department also finalized a rule to prevent deceptive contracts by meat processors and to protect small farmers from retaliation.

Overall, the Biden administration's efforts to reduce junk fees and lower costs for consumers have been a central focus heading into the 2024 election, with the administration vowing to continue fighting for fair pricing and consumer protections.