Washington, D.C. – Today, President Joseph R. Biden announced two significant actions as part of his continued effort to crack down on unfair, deceptive, and abusive junk fee practices. The President, along with the Consumer Financial Protection Bureau (CFPB), announced Proposed Rulemaking on Credit Card Late Fees that would significantly lower the consumer burden of late fees. The President also encouraged Congressional introduction of the Junk Fees Prevention Act, which would bring transparency and fairness to event ticket fees; airline family seating fees; broadband, mobile, and cable early termination fees; and hotel resort fees.

“We applaud the President’s actions today and the CFPB’s proposed rule on credit card late fees, which currently total $12 to $14 billion a year and disproportionately burden subprime consumers and consumers of color,” said Rachel Gittleman, CFA’s Financial Services Outreach Manager. “We look forward to working with the CFPB on this much-needed rulemaking that, as proposed, will profoundly impact consumers and their financial well-being.”

“Consumers pay billions each year to hotels, airlines, telecommunications providers and ticket sellers in junk fees, and we fully support these proposals to rein in the practices that perpetuate them,” said Erin Witte, CFA’s Director of Consumer Protection. “We are glad to see that President Biden is sensitive to these economic pressures on consumers and we encourage Congress to approach this pervasive problem with equal vigor.”