Senator Baldwin, Colleagues Seek Answers from Credit Card Issuers on Exorbitant Late Fees
“American families have an opportunity to save billions in excessive credit card late fees”
WASHINGTON, D.C. – U.S. Senator Tammy Baldwin and six of her colleagues called on ten of the largest credit card issuers to answer questions about their late fee practices following the Consumer Financial Protection Bureau’s (CFPB) proposed rule to limit exorbitant late fees and the banking lobby’s strong pushback against this proposed rule. The letters were sent to PNC, JPMorgan Chase, Capital One, Citigroup, Discover, Bank of America, American Express, Wells Fargo, US Bancorp, and USAA.
“The CFPB has found that American families lose an estimated $12 billion a year to credit card late fees,” wrote the lawmakers. “Consumers, even those who may only be a few hours behind on a credit card payment, may be slapped with fees as high as $41.”
“While the banking industry has opposed the proposed rule and argued that saddling Americans with excessive late fees is essential for teaching them ‘responsible credit management’ or ‘timely repayment,’ consumers have filed thousands of complaints related to credit card late fees with the CFPB,” wrote the lawmakers.
The lawmakers are asking the CEOs of PNC, JPMorgan Chase, Capital One, Citigroup, Discover, Bank of America, American Express, Wells Fargo, US Bancorp, and USAA to provide information on their role in the ongoing effort to quash the CFPB’s money-saving rule no later than May 23, 2023.
The letter was led by Senator Elizabeth Warren (D-MA) and also signed by Senators Sherrod Brown (D-OH), Chair of the Senate Banking, Housing, and Urban Affairs Committee, Jack Reed (D-RI), Richard Blumenthal (D-CT), Peter Welch (D-VT), and Bernie Sanders (I-VT).
Full text of the letter is available here.
An online version of this release is available here.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
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