Biden administration announces $8 cap on credit card late fees

The video discusses the White House's initiative to cap junk fees, particularly focusing on credit card late fees. Banks generate significant revenue from these fees, but capping them at $8 could save consumers up to $10 billion annually. While this move could benefit consumers, critics warn of potential downsides like higher interest rates. The video also offers advice on avoiding late fees and explores the political implications for the Biden administration.

What is the estimated annual revenue banks generate from credit card late fees?

• $20 billion

• $14 billion

• $5 billion

• $10 billion

What is one potential downside of capping late fees at $8?

• More frequent billing cycles

• Lower minimum payments

• Higher interest rates

• Increased credit card rewards

What is a suggested way to avoid paying late fees?

• Requesting a fee waiver every month

• Using multiple credit cards

• Paying the minimum amount

• Setting up automatic payments

How might the fee cap influence public perception of President Biden?

• It will have no impact on public opinion

• It will cause a decrease in his approval ratings

• It might lead to more criticism of his leadership

• It could improve views of his economic policies

What percentage of Americans believe President Biden is a strong economic leader?

• 25%

• 60%

• 50%

• 34%