Heather Cox Richardson Credit: Boston College

Possibly the biggest story today in terms of its impact on most Americans’ lives is that as part of its war on junk fees, the Biden administration announced an $8 cap on late fees charged by credit card issuers that have more than a million accounts. These companies hold more than 95% of outstanding credit card debt. Currently, fees average $32, and they fall on more than 45 million people. The White House estimates that late fees currently cost Americans about $25 billion a year. The rule change will save Americans about $10 billion a year.

The administration also announced a “strike force” to crack down on “unfair and illegal pricing.” Certain corporations raised prices as strained supply chains made it more expensive to make their products. But after supply chains were fixed and their costs dropped, corporations kept consumer prices high and passed on record profits to their shareholders. The strike force will encourage federal agencies to share information to enable them to identify businesses that are breaking the law. 

Banking organizations and the U.S. Chamber of Commerce came out swinging. Executive vice president […]

Read the Full Article