Business groups hit back at efforts to cap credit card late fees

Credit card companies and financial industry groups are pushing back against new proposals meant to limit late fees on credit cards. They argue that such measures could potentially upset the delicate balance of risk and return that keeps credit flowing.

The issue arises from the efforts of a number of legislators and consumer interest groups who propose different measures to cap late fees, which currently can go as high as $40. They argue that these exorbitant rates disproportionately affect low-income households and people with bad credit score, putting them into spir