WASHINGTON (AP) - The Obama administration's consumer financial watchdog agency is proposing to relax a cap on credit card fees.

The Consumer Financial Protection Bureau acknowledges that the change would increase costs for cardholders and give banks more money from fees.

The cap would govern the fees that credit card issuers can charge customers in the first year they hold a card. Those can include annual fees, application fees and other upfront charges.

Card issuers would not be allowed to charge more than 25 percent of the cardholder's credit limit.

An earlier version of the rule said that the cap applied to application fees and other upfront charges. The agency is proposing to remove those from the cap.