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A U.S. watchdog group on Tuesday slammed Republicans in Congress for trying to kill the Consumer Financial Protection Bureau's overdraft rule as U.S. President Donald Trump and billionaire Elon Musk target the CFPB as a whole.

The Accountable.US statement came in response to Senate Banking Committee Chair Tim Scott (R-S.C.) and House Financial Services Committee Chair French Hill (R-Ark.) recently introducing a Congressional Review Act (CRA) resolution to overturn the rule that capped most overdraft fees at $5, which was finalized in December, near the end of the former President Joe Biden's term.

"Overdraft fees affect a huge portion of American families with 17% of households with checking accounts paying overdraft or [nonsufficient funds] fees in 2023," Accountable.US noted. "This action would open the door for $35 overdraft fees—a decision that would cost American households an average of $225 each year."

The watchdog's executive director, Tony Carrk, declared that "undoing the CFPB's overdraft fee rule is a gift to big banks and a gut punch to the wallets of millions of Americans across the country."

"Deceitful and excessive overdraft fees cost Americans billions of dollars every year, but the Trump administration and Republicans in Congress don't seem to care any longer about lowering costs for Americans now that they're in charge," he continued. "This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hardworking Americans."

When the Republican chairs introduced their CRA resolution last week, Scott called the Biden-era CFPB rule an example of the "pursuit of political headlines over sound policies," and Hill described it "midnight rulemaking" and "another form of government price controls that hurt consumers who deserve financial protections and greater choice."

Meanwhile, when the CFPB finalized the rule, the agency said that it "took action to close an outdated overdraft loophole that exempted overdraft loans from lending laws." At the time, the bureau was still directed by Biden appointee Rohit Chopra, who highlighted that large banks' exploitation of the loophole had "drained billions of dollars from Americans' deposit accounts."

The rule "was scheduled to become effective in October," but "because of acting Director Russ Vought's unlawful order stalling all CFPB work, the effective date has been suspended," The American Prospect reported Monday. "If Congress passes the CRA resolution, the overdraft rule could not come back in any 'substantially similar' form. So it matters if congressional Republicans decide to support allowing banks to impose additional junk fees worth billions of dollars."

The outlet also pointed out that "because CRA resolutions cannot be stopped by a filibuster, they represent some of the most likely legislative actions of the early Trump term," given Republicans' narrow majorities in Congress.

It's not just the rule that's in jeopardy; the entire agency is at risk. Trump and Musk, the leader of the president's Department of Government Efficiency (DOGE)—though perhaps not on paper—are working to gut the federal workforce and slash spending, and they have the CFPB in their crosshairs.

An agreement reached Friday in federal court halted mass firings at the CFPB and barred the bureau and its temporary leader, Vought—who also leads the Office of Management and Budget—from purging data or defunding the agency while the case moves forward. However, Trump and Musk are expected to continue their effort.

Why Are There Fees on Everything? 

If there’s one thing that brings our divided nation together, it’s our hatred of junk fees.

Junk fees are extra charges you don’t know you’re paying until you get the bill. They hide the true cost when you buy a good or service, so it’s impossible to comparison shop. For example…

Say I want to travel to go see my favorite musician Dolly Parton play at Nashville’s Grand Ole Opry.

When I book my plane ticket, I have to fork up extra cash to bring luggage or change my flight. My grandkids are more into Blippi than Dolly — so they won’t be traveling with me. Otherwise, I might have to pay a fee just to sit with them.

I need a rental car once I land, so I’ll be stuck paying an extra fee to pick up the car at the airport and another fee they never told me about to cover the rental company’s costs for disposing old tires. Seriously?

When I pay my hotel bill, the price is way higher than I thought I’d pay when I booked the room, to cover wi-fi, pool access, a gym, state and local taxes and other special fees.

Before I get to the show, I better look at my checking account balance if I want to buy a record. Even if I see that I have enough money to make a purchase, the timing of other charges hitting my account could result in me getting slapped with a surprise overdraft fee. It's a simple mistake, but could make a $20 record end up costing $50.

Oh and don’t forget the concert tickets themselves. Major ticket sellers like Ticketmaster tack on fees to attend shows, which can drive up the final ticket price as much as 78% percent higher than what I was told the initial price was.

It’s all bait-and-switch. You thought you could afford to see Dolly Parton, but it turns out it’s gonna take a lot more than working “9 to 5”.

Corporations often label these types of charges “convenience fees” or “service fees.” Probably because they “conveniently” “serve” to pad their bottom lines, costing Americans at least $29 billion dollars a year we didn’t expect to pay. This is a huge problem spanning many different industries — not just the ones I’d encounter on my trip.

But there’s good news: President Biden has urged Congress to draw up legislation to prevent these outrageous fees.

Turns out, one of the few things as popular as Dolly Parton is tackling junk fees. 

For all the time Republicans spend complaining about the economic struggles faced by everyday Americans, they remain steadfast in their commitment to ensuring major corporations can continue squeezing their customers.

Late Wednesday afternoon, the GOP-controlled House Financial Services Committee voted to advance a bill that would repeal a new Consumer Financial Protection Bureau (CFPB) rule that drastically reduces the caps on credit card late fees - from $30-$41 to $8.

The legislation would also repeal the CFPB's ban on automatic adjustment of late fees due to inflation. In the Democratic-controlled Senate, where the bill is expected to fail, a similar repeal measure was introduced by Banking, Housing, and Urban Affairs Committee Ranking Member Tim Scott (R-S.C.) — who has recently devoted most of his energy to fawning over Donald Trump — and co-sponsored by 12 other Republicans.

“Credit card companies penalize consumers with exorbitant late fees that far exceed their actual costs, raking in billions of dollars in profits on the backs of those who can least afford it,” said Chuck Bell, advocacy program director for Consumer Reports, in a statement urging Congress to reject the repeal.

According to Republicans on the committee, however, lowering late fees will “harm consumers by shifting costs to responsible consumers who pay on time in the form of higher annual fees and higher interest rates,” while removing incentives for timely payments.”

An analysis published this week by the watchdog group Accountable.US found that Republicans on the committee have “received over $7.9 million from industry groups against this rule and the largest credit issuers.”

The Biden administration is trying to limit junk fees. The president made reference to this during the State of the Union speech on Thursday. Of course Republicans think junk fees and screwing the consumer are great.

The Consumer Financial Protection Bureau on Tuesday unveiled a heavily anticipated rule cutting the late fees that credit card issuers can charge, delivering on an objective that President Joe Biden touted in his State of the Union address last year. The regulation caps fees for a missed payment at $8, down from the current level of up to $41. The rule has already sparked intense pushback from banks and congressional Republicans pledging to fight its implementation. The Chamber of Commerce is vowing to sue.

Republicans are serving predatory banks which give them big campaign contributions. Excessive fees enable the banks to get fat off of poor people. Most likely the Consumer Financial Protection Bureau would be abolished or neutered by a second Trump administration.

The rule will “stop some credit card companies from ripping you off with late fees,” Biden said at a meeting of the White House Competition Council Tuesday afternoon. “This action will collectively save families $10 billion in credit card late fees every year.” The rule is part of the Biden administration’s broader campaign against so-called junk fees that has targeted industries from car dealers to cable operators. It’s a central focus of Biden’s reelection campaign and one that he’ll likely highlight in Thursday’s State of the Union speech. “Late fees have gotten out of control,” CFPB Director Rohit Chopra said on a call with reporters Monday. “Today the credit card industry hauls in more than $14 billion in late fee revenue, which our research shows is more than five times that of the companies’ associated costs.”

Banks would still make insanely large profits even with reduced junk fees. But greed makes them want to squeeze every cent they can out of American consumers.

Yeah, rightwingers already find themselves on the wrong side of the abortion and IVF issues. Now they are also trying vigorously to position themselves as defenders of price gouging, junk fees, and shrinkflation.

Below the embedded link, you will find the preamble from the article in question and a small excerpt from the statement itself.

You are encouraged to go here and share your own comment with the FTC regarding restrictions on unfair and deceptive fees. The deadline to do so is January 8th.

To everyone who joined our discussion on the FTC’s proposed “Junk Fee” rule, thank you! We drafted a statement summarizing the experiences of our members, and submitted it to the FTC this morning. Continue scrolling to read it. We also encourage each and every one of our members to submit your own comment. The FTC would appreciate comments with specific examples on how unfair or deceptive fees affect specific types of creative businesses. Deadline for public comments is next Monday – January 8th, 2024.