The GOP-controlled House Financial Services Committee has voted to advance a bill repealing a new Consumer Financial Protection Bureau rule that reduces credit card late fees, shifting costs to responsible consumers and benefiting major corporations. Despite criticism, Republicans argue that lowering late fees will harm consumers by incentivizing timely payments and raising annual fees. The repeal measure, led by Tim Scott (R-S.C.), has faced opposition from organizations advocating for consumer protection and financial transparency.
Analysis by watchdog group Accountable.US revealed that Republicans on the committee received significant funding from industry groups against the rule, totaling over $7.9 million. Several committee members facing competitive reelection races voted for the repeal, prioritizing industry donors over consumer protection. This move contrasts with the Biden administration’s efforts to eliminate junk fees and increase rate transparency, which are popular among consumers but resisted by Republicans looking to oppose Biden’s policies in an election year.