Affordable Virginia Calls on Rep. Jen Kiggans to Support Lowering Credit Card Late Fees for Working Families
House Republicans Are Backing a Resolution Which Could Strip $10 Billion Worth of Savings From American Families
Virginia Beach, Va. – Today, Affordable Virginia calls on Congresswoman Jen Kiggans to oppose a resolution her party is pushing, which would overturn a rule that would cap typical credit card late fees at $8 per month.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) finalized a rule to cut excessive credit card late fees by closing a loophole exploited by large card issuers. The CFPB estimates that American families will save more than $10 billion in late fees annually once the final rule goes into effect by reducing the typical fee from $32 to $8. This will be an average savings of $220 per year for the more than 45 million people charged late fees annually.
Now, Republicans in the House could vote at any moment to oppose this rule and increase costs for working families. The impact of this rule would relieve stress for working families.
Rashundra pictured with $220 worth of diapers, which were purchased by Affordable Virginia and donated to local families and the Greater Hampton Roads Diaper Bank| Photo Credit: Affordable Virginia
“As a mother trying to make every dollar count, $220 isn't just a number; it's the difference between a burden and a relief,” said Rashundra, a new mother and constituent of Rep. Jen Kiggans. “For working families like mine, that's over two months' worth of diapers for my baby. I use a credit card for my everyday purchases, and every dollar saved on late fees can make a big difference for a family. Representative Jen Kiggans, it's time to stand with families in your district, not corporations. Reject this resolution and prioritize the needs of your constituents over the profits of big businesses.”
“Working families in our district are relying on our Congresswoman Jen Kiggans to stand with us and oppose her party's efforts to hike credit card late fees for working families,” said Emily Yeatts, Campaign Director for Affordable Virginia. “Rep. Kiggans should be working to ensure that every family has the chance to thrive, unburdened by excessive fees.”
Low-Income Families Pay the Highest Share of Late Fees
The impacts of this new rule will be particularly significant for low-income families who pay the largest share of all credit card late fees. According to a 2023 CFPB report: “81% of households who frequently encountered these charges had difficulty paying a bill at least once in the previous year, which is around three times higher than households who did not incur fees. Individuals may encounter these penalties when prioritizing essential expenses, such as rent and utilities or emergencies.”
Lowering Late Fees Remains Overwhelmingly Popular with Americans
Seven in ten Americans support the proposed Junk Fees Prevention Act to limit hidden fees and charges like credit card late fees.
70 percent of Americans at least somewhat support decreasing credit card fees from $41 to $8
Support for congressional action on credit card fees is strong across partisanship, including 95 percent of Democrats, 85 percent of independents, and 81 percent of Republicans.
