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WASHINGTON, DC — Today’s Senate Committee on Banking, Housing, and Urban Affairs hearing, “Consumer Protection: Examining Fees in Financial Services and Rental Housing,” underscored the need for urgent action to regulate the greedy financial industry actors and corporate rental companies most reliant on exploitative junk fees to pad their excessive profits (video highlights below). 

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From credit card late fees to surprise rental fees, greedy, exploitative junk fees have unfortunately become the norm across industries. While Americans are forced to tolerate excessive charges each month, litigious industry actors, MAGA lawmakers, and their industry donors are standing in the way of the Biden administration’s work to lower costs. Rather than spending their time defending rich CEOs, they should clear the path for a system where every American can access services without fear of hidden fees.”

Accountable.US Liz Zelnick

HEARING HIGHLIGHTS

  • .@SenSherrodBrown: Credit card companies rake in 5x their costs, charging consumers $14.5B in late fees last year alone. New @CFPB rules will cut late fees to save Americans $10B yearly. In ’09 Big Banks griped, and they’re doing it again—they just want to protect their profits. [FULL CLIP]
  • Let’s get the facts straight: The new @CFPB rule cutting credit card late fees doesn’t apply to small institutions like credit unions—only the Big Banks boosting their profits by price-gouging consumers. @SenateBanking #economy [FULL CLIP]
  • WATCH ▶ As Big Banks profit from price-gouging Americans, @SenWarren asks the real question: “Do you know anyone who is actually a consumer who loves junk fees?” @SenateBanking [FULL CLIP]

Today’s hearing comes as the Consumer Financial Protection Bureau (CFPB) defends its $8 credit card late fee cap from an industry-spurred Congressional Review Act and lawsuit before the conservative United States District Court for the Northern District of Texas. Despite industry and far-right objections, the historic rule would save 45 million Americans up to $10 billion every year in predatory fees. As Accountable.US has documented, the 8 largest credit card issuers charged consumers billions in credit card late fees and other service charges in 2023 alone. 

A new review from government watchdog Accountable.US found that financial industry CEOs have made dubious claims for decades to defend exploitative practices, with claims made by CEOs in 2009 against the CARD Act mirroring those made this year against the CFPB’s credit card fee cap. 

Rental corporations have similarly relied on junk fees to boost their profits. An analysis released earlier this year by Accountable.US found that rental giants Invitation Homes and AMH made a combined $953.1 million in profit in 2023—a 37% increase from 2022—amid rent hikes and excessive fees. 

JUNK FEE HIGHLIGHTS FROM ACCOUNTABLE.US

Watchdog: Final Biden Credit Card Late Fee Rule Will Lower Costs for Americans Over Industry Objections

Financial Committee Republicans Put Big Bank Donors Before Consumers in Vote to Block Credit Card Late Fee Cap

5th Circuit Judge Willett Poised to Decide His Own Financial Conflicts Are Fine in U.S. Chamber Lawsuit Against CFPB Credit Card Rule

Watchdog: Major Landlord Companies Continue to Price-Gouge Despite Through-the-Roof Profits

Watchdog: DOJ Probe on Landlord Price-Fixing Good News for Price-Gouged Renters

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