Fetterman Backs $8 Credit Card Fee Cap
US Senator John Fetterman has thrown his support behind a proposed law that aims to limit credit card late fees to $8. The Credit Card Fairness Act, introduced by Fetterman and fellow Senators Cory Booker and Tammy Baldwin, seeks to protect consumers from exorbitant charges that can quickly add up.
According to the Consumer Financial Protection Bureau, Americans shell out a staggering $14 billion annually in credit card late fees, with the average fee ranging from $30 to $41. This is significantly higher than the actual cost of collecting late payments, which is estimated to be around $8. The proposed legislation aims to cap late fees at this lower amount, providing relief to millions of consumers who struggle to make ends meet.
Proponents of the bill argue that credit card companies should not be allowed to profit from late fees, particularly when these fees are paid by individuals who are already struggling to pay interest on their debts. As Aaron Klein, a senior fellow at the Brookings Institution, noted, ‘Credit cards should be basing profit on the economics of the business, not on the backs of people who are paying late fees.’
The Credit Card Fairness Act has garnered support from various consumer advocacy groups, including Americans for Financial Reform, the Consumer Federation of America, and the National Consumer Law Center. These organizations believe that the proposed law will help to level the playing field and prevent credit card companies from taking advantage of vulnerable consumers.
Senators Fetterman, Booker, and Baldwin have all spoken out in support of the bill, citing the need to protect hardworking Americans from predatory fees. As Senator Fetterman stated, ‘Big banks profiteering off people by charging $41 for a single late credit card payment is absolutely wrong.’ The lawmakers are urging their colleagues to support the legislation and help to bring an end to the practice of excessive late fees.
The proposed law has also been endorsed by various experts, who argue that it will have a positive impact on consumers and the economy as a whole. By capping late fees at $8, the Credit Card Fairness Act is expected to save consumers over $200 per year on average, which can be a significant amount for individuals and families who are already struggling to make ends meet.
In conclusion, the Credit Card Fairness Act is a much-needed piece of legislation that aims to protect consumers from excessive credit card late fees. With the support of Senators Fetterman, Booker, and Baldwin, as well as various consumer advocacy groups, this proposed law has the potential to make a real difference in the lives of millions of Americans.
