Business groups are opposing efforts to place a cap on credit card late fees, which are seen by many as a way to protect consumers from high penalties. These groups argue that capping fees could lead to stricter lending requirements for consumers and potentially lead to higher interest rates to compensate for the loss in revenue. They believe such measures could also stifle competition and innovation in the industry.
Financial institutions argue that late fees act as a deterrent for late payments and encourage responsible financial behavior. They also see them as necessary
