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On July 26, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing, Taking Account of Fees and Tactics Impacting Americans’ Wallets, sometimes called “junk fees.”
There were three witnesses:
- Ms. Michelle A. Henry, Attorney General, Commonwealth of Pennsylvania
- Ms. Lindsey Siegel, Director Of Housing Advocacy, Atlanta Legal Aid Society
- Mr. Brian Johnson, Manager Director, Patomak Global Partners
In March 2023, the Chair of the U.S. Senate Banking Committee, Sherrod Brown (D-OH), said, “[t]Too often, renters are hit with unexpected junk fees on top of their rent that eat into seniors’ and working families’ monthly budgets,” said Brown. “I applaud the Administration for taking on these fees so that we can bring down one of the biggest costs that Americans face.” In June 2023, at a Banking Committee hearing on the CFPB, Ranking Member Tim Scott (R-S.C.), said “[l]et’s be honest: no one likes paying late fees. But they do encourage financial discipline. When you pay your credit card on time, your credit score goes up. When you don’t, it goes down. And when your credit score goes down, it makes it harder to get a car loan, a small business loan, or even a mortgage at a better rate. So, I am concerned that the CFPB’s crusade on “junk fees” will do more harm than good, and actually end up restricting access to credit for low and middle-income Americans with limited credit histories.”