CUNA, NAFCU respond to State of the Union address, share concerns over access to short-term credit.<\/em><\/p>\n Credit union trade group officials are bristling at President Biden\u2019s characterization of \u201cjunk fees\u201d during his\u00a0State of the Union address.<\/a><\/p>\n He added, \u201cJunk fees may not matter to the very wealthy, but they matter to most folks in homes like the one I grew up in. They add up to hundreds of dollars a month.\u201d<\/p>\n Later, he said, \u201cI know how unfair it feels when a company overcharges you and gets away with it. Not anymore.\u201d<\/p>\n Background<\/strong><\/p>\n To attempt to place the issue in context, the CFPB has issued a\u00a0proposed rule that would reduce credit card late fees to $8<\/a>. And while there has been widespread discussion of the CFPB issuing a final rule reducing overdraft fees, one has yet to be adopted.<\/p>\n \u00a0<\/strong>Pushback From Credit Union Groups<\/strong><\/p>\n Still, credit union trade groups quickly criticized Biden\u2019s characterization.<\/p>\n \u201cThe president\u2019s use of the term \u2018junk fee\u2019 is overly broad and ignores the needs of low-income and middle-income consumers who depend on these services to resolve short-term financial difficulties,\u201d\u00a0CUNA<\/a>\u00a0President\/CEO Jim Nussle said. \u201cIt does not consider the costs involved in providing needed financial services that consumers depend on.\u201d<\/p>\n He added that consumers must opt-in to have the option of overdraft protection, without which people are more likely to turn to predatory lenders, \u201cthe same people the administration seeks to help.\u201d<\/p>\n![\"\"](\"http:\/\/www.ncultheaffiliate.com\/wp-content\/uploads\/2023\/02\/biden.jpg\")
\u201cMy administration is also taking on \u201cjunk\u201d fees, those hidden surcharges too many businesses use to make you pay more,\u201d Biden said. \u201cWe\u2019ve reduced exorbitant bank overdraft fees, saving consumers more than $1 billion a year. We\u2019re\u00a0cutting credit card late fees by 75%, from $30 to $8.\u201d<\/p>\n
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