The Biden administration has endorsed a proposal by the Consumer Financial Protection Bureau (CFPB) to cap all credit card late fees at $8 or 25 percent of the minimum periodic payment. If enacted, it would punish on-time creditors with higher interest rates and restrict access to credit. The recent action is part of a broader effort by the administration to attack hidden and unfair “junk fees.” Despite what the administration believes, a new survey released on April 5 by the Consumer Bankers Association (CBA) reveals that consumers do not find credit card late fees hidden or unfair.

Published in its entirety by the Foundation for Economic Education.