Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released the following statement applauding the Consumer Financial Protection Bureau’s (CFPB) recently proposed rule that would reduce credit card late fees from as much as $41 to $8.
“I applaud Director Chopra and the Consumer Financial Protection Bureau for their latest effort to combat junk fees, by proposing a rule to reduce the maximum late fee that credit card companies can charge consumers to $8. This is a big improvement from the typical $30 to $41 late fees many companies charge, which cost consumers around $12 billion each year. At a time when consumers are paying more on their credit card balances as the Fed keeps raising interest rates, the CFPB’s proposal will be a welcome relief and save consumers $9 billion a year once it is finalized.
“During yesterday’s State of the Union, I was pleased to hear President Biden call out junk fees by name, and double down on the Administration’s commitment to limit hidden fees and surcharges in a number of industries. Committee Democrats will continue to support this effort, as we have long helped lead the fight to shine a bright light on these types of harmful junk fees and have advanced legislation to ensure consumers are not nickel and dimed out of savings that could go towards buying a new home or starting a small business. Thanks to the leadership of Director Chopra, the CFPB is helping to advance these efforts to put more money back into consumers’ pockets. I, and consumers across the country, can’t wait for this rule to be finalized as soon as possible.”
The Committee previously held a number of oversight hearings and advanced legislation to curb excessive junk fees charged by financial institutions. For example:
On April 10, 2019, the full Committee held a hearing entitled, “Holding Megabanks Accountable: A Review of Global Systemically Important Banks 10 years after the Financial Crisis.”
On May 27, 2021, the full Committee held a hearing entitled, “Holding Megabanks Accountable: An Update on Banking Practices, Programs and Policies.”
On July 21, 2021, the Subcommittee on Consumer Protection and Financial Institutions held a hearing entitled, “Banking the Unbanked: Exploring Private and Public Efforts to Expand Access to the Financial System.”
On March 31, 2022, the Subcommittee on Consumer Protection and Financial Institutions held a hearing entitled, “The End of Overdraft Fees? Examining the Movement to Eliminate the Fees Costing Consumers Billions.”
On July 28, 2022, the full Committee marked up and approved H.R. 4277 (117th Cong.), the Overdraft Protection Act sponsored by former Rep. Carolyn Maloney. The bill would establish a number of safeguards to curb excessive overdraft fees.
On September 21, 2022, the full Committee held a hearing entitled, “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks.”
The full Committee held a number of hearings with the Director of the Consumer Financial Protection Bureau (CFPB), most recently on December 14, 2022, with a hearing entitled, “Consumers First: Semi-Annual Report of the Consumer Financial Protection Bureau.”