Last week, the Consumer Financial Protection Bureau announced a new rule banning excessive credit card late fees, also known as “junk fees.” This announcement follows new research from Groundwork Collaborative showing corporate executives at Mastercard, Visa, and Discover crowing about raising fees on consumers to increase revenue. Groundwork’s Chief Economist Dr. Rakeen Mabud responded with the statement below:
“Earnings call after earnings call shows how three credit card companies have used their market dominance to raise consumer fees and rake in massive profits. Junk fees are yet another tactic to juice their profit margins and enrich their shareholders even further.
“The CFPB’s new rule highlights how the government can – and should – take on the powerful corporations that are preying on the most vulnerable people in our economy.”