Companies sue Biden administration over crackdowns on 'junk fees'

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The U.S. Chamber of Commerce successfully sued to halt the president's plan, which would've capped credit card late fees at $8 per month.

Ahead of November's general election, President Joe Biden is betting a lot on cracking down on junk fees as an issue that will resonate with voters. However, he's running into one big issue: lawsuits.

Earlier this year, President Biden announced a multi-year effort to crack down on those fees, which can sometimes be $30 or more. The president's plan calls for that to be lowered to no more than $8 per month.Federal judge temporarily halts Biden plan to lower credit card late fees to $8 AP via Scripps News 9:10 AM, May 12, 2024 The effort to eliminate junk fees has taken on hotels, airlines and banks.

Joseffer said his group is looking out for the unintended consequences. A credit card company, for instance, may just deny a person credit if they can't impose proper fees.Eliminating 'junk fees' would create chaos at restaurants, group says Justin Boggs 11:26 AM, Feb 12, 2024 "Late fees are not junk fees," Joseffer said."It's a fee because you didn't pay your bill on time.

 

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