Steil joins Republicans, including Subcommittee Chairman who argued “the vast majority of Americans” want high credit card fees, in voting to protect big banks over working families
Monday, April 22, 2024
KENOSHA, Wis. – In case you missed it, Congressman Bryan Steil and Republicans in the House voted last week to keep credit card fees high and block a rule that is estimated to save more than 45 million Americans an average of $220 each year.
Steil joined Republicans on the House Financial Services Committee in voting to approve H. J. Res. 122, which would repeal a rule capping credit card late fees at $8. During a hearing on the measure, resolution sponsor and Subcommittee Chair Andy Barr claimed that “the vast majority of Americans” support higher late fees on credit cards.
“Working families face enough obstacles, high credit card fees shouldn’t be one of them,” said Opportunity Wisconsin Program Director Meghan Roh. “By voting to keep credit card fees high, Congressman Steil chose to stand with big banks instead of supporting working Wisconsinites. It’s time for Congressman Steil to work with his colleagues to lower costs and work to eliminate junk fees that are taking too much of our hard-earned money.”
One recent report also shows that Steil has received more than $241,000 from the biggest credit card companies and industry trade groups who have opposed the rule capping credit card fees, in addition to thousands of dollars in contributions this year alone from some of the nation’s largest credit card issuers.
Bloomberg: CFPB Credit Card Late Fee Rule Repeal Approved by House Panel
Lawmakers advanced legislation to block the Consumer Financial Protection Bureau’s rule capping credit card late fees at $8, setting up a vote in the US House of Representatives.
The House Financial Services Committee voted 28-22 along party lines Wednesday to approve a measure (H. J. Res. 122) from Rep. Andy Barr (R-Ky.) that would repeal the CFPB’s rule under the Congressional Review Act and bar the agency from introducing a similar proposal.
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The CFPB estimates that around 45 million Americans are charged credit card late fees each year, and that the rule will save them up to $220 per year. On the flip side, banks stand to lose about $11 billion of the $14 billion in credit card late fees they generate annually, according to Bloomberg Intelligence.
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Rolling Stone: Republicans Are Determined to Keep Credit Card Late Fees High
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Late Wednesday afternoon, the GOP-controlled House Financial Services Committee voted to advance a bill that would repeal a new Consumer Financial Protection Bureau (CFPB) rule that drastically reduces the caps on credit card late fees — from $30-$41 to $8. The legislation would also repeal the CFPB’s ban on automatic adjustment of late fees due to inflation. In the Democratic-controlled Senate, where the bill is expected to fail, a similar repeal measure was introduced by Banking, Housing, and Urban Affairs Committee Ranking Member Tim Scott (R-S.C.) — who has recently devoted most of his energy to fawning over Donald Trump — and co-sponsored by 12 other Republicans.
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According to Republicans on the committee, however, lowering late fees will “harm consumers by shifting costs to responsible consumers who pay on time in the form of higher annual fees and higher interest rates,” while remov[ing] incentives for timely payments.”
An analysis published this week by the watchdog group Accountable.US found that Republicans on the committee have “received over $7.9 million from industry groups against this rule and the largest credit issuers.”
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