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Dear John,
“Americans can’t agree on anything,” some people like to say. What about the fact that 3 in 4 Americans support legislation to tackle junk fees? These hidden up-charges are egregious, and they allow corporations to siphon money from working people.
It is a very big deal that the Biden administration is cracking down on these “junk fees.” They're used to manipulate and prey on working people. As President Biden has said, they take “real money out of the pockets of American families.”
Credit card late fees are among the most widespread and costly of these junk fees. Currently Americans pay $12 billion dollars a year in credit card late fees.
It’s a massive, multi-billion dollar transfer of wealth from the poorest Americans to Wall Street.
The industry average for credit card late fees is $31. But the Consumer Financial Protection Bureau (CFPB) found that a reasonable fee, one that covers the actual costs for banks, is $8. That’s a big difference. No wonder they make $12 billion from these fees.
Under Director Rohit Chopra, the CFPB has proposed a new consumer protection that would reduce credit card late fees at $8, but the Big Banks are working to stop them. So we need your help to make it happen.
Submit your own official comment in support of the CFPB’s new rule to set credit card late fees at $8 for everyone now and help beat the Wall Street banks.
Last year, Discover booked more than $400 million in late fees. Capital One: $1.4 BILLION.
With this new CFPB regulation, the Biden administration is moving to force banks to cut these late fees to just $8 each. This will save the poorest Americans $9 billion a year. That’s $9 billion a year LESS exploited from the poorest Americans and handed to Big Banks.
This is why the Consumer Financial Protection Bureau exists, to fight for consumers and against corporate greed. Now, the CFPB needs us to back up this critical rule during its official public comment period -- and make sure that Wall Street doesn’t kill this vital reform.
Sign and send your comment in support of the rule to the official federal registry to make sure this $8 credit card late fee becomes a reality.
It’s time for Congress to act. Thank you for helping to eliminate these wildly exorbitant fees by taking action now.
Robert Reich
Inequality Media Civic Action
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