FOR IMMEDIATE RELEASE
Feb. 8, 2023
William Pierre-Louis, Jr.
Biden Address Confirms Focus on Protecting Consumers from Junk Fees
Washington, D.C – President Biden yesterday seized the moment of his State of the Union Address to reiterate his administration’s determination to crack down on junk fees – and especially credit card late fees – that companies use to rip off vulnerable consumers.
“The president’s remarks proved that his focus to keep money in working families’ pockets is a top priority,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform. “Banks have a long history of exploiting loopholes to hike fees that leave low-income individuals and consumers of color in unprecedented financial predicaments.”
Prior to the president’s remarks on Tuesday evening, the administration published a fact sheet on February 6, highlighting the work that the CFPB has been doing against junk fees to protect low-income individuals and consumers of color from these financial practices.
The CFPB’s proposal on excessive credit card late fees would save consumers up to $9 billion a year in late fees. Biden also called on Congress to pass a Junk Fees Prevention Act to curb or eliminate fees in areas such as transportation, entertainment and hospitality.