Senate Republicans are preparing to go on the record in favor of gouging Americans with sky-high "junk fees," just months before a major presidential election where the economy will play a deciding role.
In a recent report in the American Prospect, reporter David Dayen delved into the GOP's response to a new rule from President Joe Biden's Consumer Financial Protection Bureau (CFPB) capping credit card junk fees at $8, helmed by Sen. Tim Scott (R-South Carolina). Scott — the Senate Banking Committee ranking member who is thought to be on the short list of potential running mates for former President Donald Trump — is leading the charge on a bill to scrap the rule. His one-page bill deems that the CFPB rule limiting junk fees "shall have no force or effect."
"Lawful and contractually agreed upon payment incentives promote financial discipline and responsibility, and this rule shows that the CFPB is more focused on scoring political talking points than policies that protect consumers," Scott said in a statement posted to his website.
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Scott's push to overhaul the Biden administration's limit on junk fees has the full support of the banking industry's top lobbyists and trade associations. Scott's statement noted that his bill was supported by the "Consumer Bankers Association, America’s Credit Unions, Independent Community Bankers of America, Bank Policy Institute, American Bankers Association, Americans for Tax Reform, Competitive Enterprise Institute and the US Chamber of Commerce."
Adam Green, a progressive activist who helped Biden organize events in the swing states of Michigan and Pennsylvania to highlight his opposition to junk fees, told Dayen that the GOP openly railing against junk fees is a gift to Democrats ahead of the November election.
"We’ve seen Democratic unity on fighting surprise junk fees and naming corporate villains like credit card companies, banks, and airlines," Green said. "What’s been missing is opponents smoking themselves out and raising the volume of this fight so the public knows who is on their side."
Dayen further explained that because the US Senate is controlled by Democrats, Scott's bill is virtually guaranteed to fail passage. According to Dayen, all the "doomed vote" on the bill would accomplish is putting Republicans officially on the record in favor of jacking up excessive fees on Americans. He added that even 72% of self-identifying Republicans polled in December of 2023 were in favor of banning junk fees.
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"If you can believe it, Senate Republicans are actually trying to increase credit card fees for Americans. Democrats will not allow this bill to become law," Senate Majority Leader Chuck Schumer (D-New York) tweeted.
The White House also weighed in on the bill, with spokesperson Michael Kikuwawa saying Biden "strongly supports the Consumer Financial Protection Bureau’s work to lower costs for consumers and take on corporate greed."
"Unfortunately, Congressional Republicans are siding with special interests and big corporations to try to undercut the Consumer Financial Protection Bureau, which would raise costs and reduce options for consumers," Kikuwawa added. "The President won’t let Republicans undercut hardworking families for the sake of corporate profits."
Click here to read Dayen's article in the Prospect.
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