Sen. Elizabeth Warren on Thursday mocked Republicans who want to overturn a new federal rule aimed at curbing excessive credit card late fees, arguing they appear to love the dreaded junk fees that so many Americans hate.
“Do you know anyone who is actually a consumer who loves junk fees?” the Massachusetts Democrat asked a witness at a Senate Banking Committee hearing that examined how junk fees affect American consumers and their budgets.
“I have never heard someone say, 'Oh, I paid an overdraft fee and I'm really glad that worked out,'” said Adam Rust, the director of financial services at the Consumer Federation of America.
“Yeah, that really worked out well for me. I have never seen the bumper sticker, 'I Heart Junk Fees,'” Warren said.
The Consumer Financial Protection Bureau (CFPB) in March finalized a rule that would cap the usual credit card late fee at $8, down from $32. Biden, who estimates the move would save U.S. families $10 billion every year, has made tackling junk fees a signature priority of his economic agenda. The rule would also prevent credit card issuers from automatically increasing fees based on inflation.
But Republicans have argued that the president lacks the authority to issue this rule, and credit card companies claim it could force them to raise interest rates for customers.
The CFPB's rule is expected to take effect in mid-May, although potential legal challenges loom.
