The federal government’s consumer protection watchdog proposed a new rule on Wednesday to ban excessive credit card late fees, potentially reducing them by as much as $9 billion per year.

Congress banned exorbitant credit card fees under the Credit CARD Act in 2009, but an immunity provision instituted by the Federal Reserve Board of Governors enabled card companies to dodge enforcement standards, said Rohit Chopra, director of the Consumer Financial Protection Bureau.

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But the American Economic Liberties Project, an anti-monopoly organization, lauded the CFPB for standing up to credit card companies.

“For too long, credit card companies have cashed in on evading the 2009 CARD Act, turning huge profits by slapping consumers with unreasonable and disproportionate fees that often charge up to five times the costs associated with collecting late payments,” said Shahid Naeem, an AELP policy analyst. “The CFPB’s fight against rip-off junk fees is a clear demonstration of the ways strong regulators can protect Americans from the corporate giants taking advantage of them.”

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