'Nickel and diming': GOP slammed for helping banks 'squeeze customers' with 'junk fees'

The Consumer Financial Protection Bureau — a federal government agency created in 2011 during former President Barack Obama's first term — recently created a cap on credit card late fees.

But on Wednesday, the Republican-controlled House Financial Services Committee voted to advance a bill that, if passed, would repeal it.

Rolling Stone's Nikki McCann Ramirez reports that the CFPB "drastically reduces the caps on credit card late fees — from $30-$41 to $8."

READ MORE:Bank overdraft charges may be capped at $3 as new Biden rule ends 'junk fee harvesting'

Ramirez reports, "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-SC) — who has recently devoted most of his energy to fawning over Donald Trump — and co-sponsored by 12 other Republicans."

Liz Zelnick, director of the Economic Security & Corporate Power Program at the watchdog group Accountable.US, slammed MAGA Republicans as hostile to consumer protections.

In an official statement, Zelnick complained, "The Committee should put consumers poised to save billions before their industry megadonors. Big bank CEOs that boast of billion-dollar profits after nickel and diming Americans with junk fees don't need more special treatment from the MAGA Congress."

Ramirez notes that in October 2023, the Biden White House "announced a push to eliminate junk fees and increase rate transparency for consumers across various industries" — a push that, according to Ramirez, has been met with resistance from Republicans who are "hellbent on denying" President Joe Biden "any victory in an election year."

READ MORE: 'Doomed': Republicans 'smoking themselves out' in upcoming vote to raise credit card fees

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