WASHINGTON, DC — Ahead of President Biden’s event today on the administration’s effort to crack down on ‘junk’ fees that needlessly cost families billions of dollars every year, government watchdog Accountable.US highlighted key facts consumers should know about the industries that abuse the practice and why some in Congress defend it. *See Accountable.US’ research roundup below.
Junk fees rob hard-working Americans of billions of dollars every year, yet many Republicans in Congress actually celebrate the practice after taking millions from industries that pad their profits with hidden and excessive charges. Industry has already spent millions lobbying against the Junk Fee Prevention Act because they want to keep exploiting consumers in the shadows. Congress should work with the Biden administration to give nickel-and-dimed American families some relief, not make excuses for their greedy industry donors that undermine the economy.”
Liz Zelnick, Accountable.US’ Director of Economic Security and Corporate Power.
To date, the MAGA House majority has refused to consider the ‘Junk Fee Prevention Act’ that would rein in abusive and often-hidden fees and penalties, including excessive online ticket fees, airline family seating fees, exorbitant early termination fees, and surprise resort or destination fees. The bill is part of the Biden administration’s major crackdown on junk fees which has strong bipartisan public backing from 3 in 4 Americans.
Republicans in Congress have also sharply criticized the Consumer Financial Protection Bureau’s initiative to cap credit card late fees at $8 and save American families $9 billion every – even as the effort has already helped save consumers a staggering $4.25 billion. These lawmakers have stood in defense of their financial industry donors, with Republican members of the Senate Banking Committee going as far as to say that ‘junk fees’ have “legitimate purposes.” Their impassioned defense of junk fees was on full display this week as Director Rohit Chopra testified before the House and the Senate.
WHAT YOU NEED TO KNOW ABOUT JUNK FEES FROM ACCOUNTABLE.US:
- Here’s Why Chairman McHenry Is Desperate to Justify Junk Fees
- Consumers Already Saved Billions Under CFPB’s Junk Fee Crackdown: So Why Are Senate Banking Republicans Complaining?
- Junk Fee-Abusing Industries Already Spent $1.7M Lobbying Against ‘Junk Fee Prevention Act’
- Megabanks Post Even Bigger Profits After Reaping $20.5B From Junk Fees In 2022
- Report: Top 20 ‘Junk Fee’ Banks Heavily Target Lower-Income Communities
- Senate Banking Republicans Pen Love Letter to ‘Junk Fees’ After Taking Over $2.2M from Banks That Abuse Them
- Accountable.US Video on Why It’s Time to Rein in Banking Junk Fees
- Behind The Financial Industry’s Rhetoric That Overdraft Fees “Save Customers Money” Is A Much Costlier Reality For Consumers
- Republican Lawmakers Opposed To Overdraft Regulation Have Taken $3 Million From Industry, Including $41,500 In Donations In The Days Before And After Defending Overdraft Fees
- Consumers Paying An Average Overdraft Fee Of $35 Could Use That Money To Buy Necessary Consumer Goods, Such As Coffee, Gas, And Baby Food.