Back in October, the White House announced an ambitious initiative to get rid of rampant junk fees, including in the banking industry. On Tuesday, the Consumer Financial Protection Bureau announced a big move toward that end, with a new regulation that will significantly reduce the late fees that customers have to fork over for their credit cards, reports the Washington Post.
- A smaller hit: Per the new CFPB proposal, customers would pay just an $8 late charge, down from an average of $32—unless the issuing banks can "show their math" and prove they need to charge more to make up any losses. The government agency notes that this adjustment would save US families more than $10 billion in late fees annually, with an average savings of $220 per year for the 45 million or so individuals who pay such late charges.