Biden Admin. Announces Latest Crackdown on 'Junk Fees'
The Facts
The Biden administration Tuesday announced a series of rule changes and regulations cracking down on so-called "junk fees" associated with late credit card payments, hidden fees, and "bulk billing" for services.
One new regulation includes a new Consumer Financial Protection Bureau (CFPB) rule setting an $8 cap for most credit card late fees and requiring banks to show why they should charge more than $8. The average credit card late fee is currently $32.
The Spin
Democratic narrative
The Biden administration continues to be a hero to consumers, who are now due to save billions of dollars. The White House is prioritizing easing the financial burden vulnerable people face, and reducing or eliminating unnecessary "junk fees" is a major part of this fight.
Republican narrative
This is classic government overreach by the Democratic administration. These regulations are going to cause the banking system problems, including reducing competition and disincentivizing people to pay their credit card bills on time. In an effort to bribe people for their votes, the White House is hurting both businesses and consumers.
