The White House will propose a rule intended to lower credit card late fees to approximately $8. 

The Consumer Financial Protection Bureau (CFPB) will propose the rule at President Biden's fourth Competition Council meeting.

"Over a decade ago, Congress banned excessive credit card late fees, but companies have exploited a regulatory loophole that has allowed them to escape scrutiny for charging an otherwise illegal junk fee," CFPB Director Rohit Chopra said in a press release. "Today’s proposed rule seeks to save families billions of dollars and ensure the credit card market is fair and competitive."

The Biden administration claims the steep price of late payments is utterly disproportionate to the low costs they place on the credit card companies.

"Specifically, the proposed rule would lower the immunity provision for late fees to $8 for a missed payment as well as end the automatic annual inflation adjustment," the CFPB announced. "The proposed rule would also ban late fee amounts above 25% of the consumer’s required payment."