Mobile Billboards in CD 3 Call Attention to Congressman Nunn’s Vote for High Credit Card Late Fees
Fairness for Iowa, a grassroots coalition of organizations based in the 3rd Congressional District, unveiled a digital mobile billboard today drawing attention to Congressman Zach Nunn's recent vote to keep credit card late fees high. Nunn and his Republican colleagues on the House Financial Services Committee voted a resolution out of committee that would reverse a Consumer Financial Protection Bureau (CFPB) rule that would significantly reduce credit card late fees from an average of $32 to just $8. This number represents the cost that consumers incur if they are late making their monthly credit card payments. The CFPB estimates that more than 45 million people are charged late fees amounting to $14 billion in late fees annually. Once the rule goes into effect, those affected will save more than $220 per year.
The rule has also been challenged in court by big banks and special interest groups, and today an injunction was filed to stop the rule from going into effect while a federal judge in Texas finalizes a decision in the case. Now, consumers in Iowa and across the country await judgment with the rest of the country to see if credit card fees will indeed be cut down by 75%.
Americans across the political spectrum support efforts to lower or eliminate junk fees—like credit card late fees. About seven in ten Americans support President Biden and Democrats proposed Junk Fee Prevention Act, which limits hidden fees akin to charges like credit card late fees, demonstrating their shared desire to remove undue financial burdens from consumers. Congressman Nunn’s vote to keep credit card late fees high is a slap in the face to consumers who can’t afford to pay excessive fees charged by big credit card companies. Congressman Nunn has received nearly $40,000 in donations from the eight largest U.S. credit card issuers—including $5,000 from American Express’ PAC in the first quarter of 2024. Blocking CFPB’s pro-consumer rule to lower credit card late fees would mean fewer dollars in our pockets and sustained profits for big credit card companies.
“Amidst high costs of living, all of us in the 3rd Congressional District hoped Zach Nunn would support his constituents and lessen the burden of predatory credit card fees,” said Matt Sinovic, Executive Director of Progress Iowa. “The time has come for Zach Nunn to finally support his constituents that are fighting to stay afloat while experiencing financial hardship. To support us, Congressman Nunn must change course and vote against high credit card late fees if this resolution comes to the floor for a vote. It's time for him to stand up for his constituents, not help credit card companies pad their bottom lines.”
The billboard debuted on Thursday, May 9th, beginning its route outside Nunn's office and then making its way to Drake University. At 4:00 PM, the billboard drove past Valley Junction in West Des Moines, coinciding with the start of the weekly farmer's market, where it remained for a couple of hours.
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Fairness for Iowa is a local grassroots campaign to uplift the stories of hard-working Iowans. We know that when the middle class does well, all of us do well — which is why we’re fighting on behalf of working Americans and holding corporations, wealthy executives, and the politicians who enable them accountable. Fairness for Iowa is a coalition of organizations, including: Iowa Citizen Action Network, Iowa Federation of Labor AFL-CIO, AFSCME Council 61, Health Care for America Now, Lower Drug Prices Now Iowa, Iowa Main Streets and Country Roads, and Progress Iowa.
