Rep. Zepnick calls for cap on Telco late fees

Milwaukee – Rep. Josh Zepnick today called to restore the cap on late charges that may be charged to retail consumers of telecommunication services: Landline, wireless, internet and cable television services.  He has begun circulating a bill that repeals parts of 2011 Act 22.  Currently, there is no cap on late fees, and consumers can be charged late fees amounting to the equivalent of a 200% APR.  The change was made under the direction of Governor Scott Walker and Legislative Republicans in 2011.

“Consumers are hurting because of this reckless legislation.  It’s an unnecessary and excessive burden on hard-working Wisconsin customers.  What I am proposing today simply reinstates the ability of the PSC to place a cap on late fees.  A ceiling of 1.5% monthly (18% APR) is more than enough to cover the financial costs associated with late-paying customers, especially at a time of historic, low borrowing rates that major corporations have access to.

“Over the past series of sessions, I’ve been one of the leading voices on the Energy and Utilities committee.  I whole heartedly believe that late fees need to be capped at a reasonable price so fees do not gauge hardworking households for the simple mistake of a missed payment.”

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