Junk Fees Get Elevated to State of the Union
Biden calls on Congress to pass key consumer protection legislation
Those watching the State of the Union address this week — or, those seeing some clips on news sites or social media — might have noticed that President Biden specifically called out “junk fees” in the address.
Yes, the most powerful office in America took a moment in an annual address to single out junk fees — like credit card late fees or overdraft fees or hotel fees.
He did it in front of Congress and the nation.
Why?
It’s wildly popular.
Overdraft fees suck — and banks often order transactions to maximize fees.
Credit card late fees are not really an incentive to pay on time — but they are a key profit source ($12 billion/year) for credit card issuers.
Here’s more on Biden’s efforts by way of the Consumer Financial Protection Bureau (CFPB):
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