Palmetto State News

U.S. Senator Tim Scott (R-S.C.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, recently criticized his Democratic colleagues for avoiding responsibility for the consequences of President Biden’s economic policies. In a recent hearing, Senator Scott drew attention to the Biden administration's efforts to target standard payment incentives rather than reducing its regulatory agenda that has increased costs for consumers nationwide.

Last month, Senator Scott introduced a Congressional Review Act (CRA) resolution to overturn the Consumer Financial Protection Bureau’s (CFPB) rule capping credit card late penalties. He argued that this rule will decrease the availability of credit card products for those who need it most, raise rates for many borrowers who carry a balance but pay on time, and increase the likelihood of late payments across the board.

During his opening remarks at the hearing, Senator Scott stated: "At last week’s hearing, we heard from my colleagues on the other side of the aisle that the high prices Americans are paying...are the result of 'greedflation' and 'shrinkflation.' And today, it’s a similar story. This time, the 'boogeyman' is so-called 'junk fees'—and these fees are to blame for the obvious economic pain Americans are feeling."

Senator Scott further expressed his frustration with what he perceives as an avoidance of responsibility by Democrats and this administration. He criticized their use of scapegoats to deflect blame for economic harm inflicted upon American households due to unchecked spending and increased regulation across various sectors.

He continued: "Sure, it might be easy...to slap a label of 'junk' or 'excessive' on additional costs for legitimate products and services in an effort to villainize business in America...But it is long past time that Democrats stopped playing political games with price controls and trying to micromanage business operations."

Scott also voiced concerns about reduced access to credit and limited economic opportunities resulting from these policies. He underscored the impact of the CFPB's credit card penalty fee rule, stating that it will result in lower credit limits and higher interest rates for borrowers, new fees for currently free services, and restricted access to credit for those who need it most.

In his closing remarks, Senator Scott called for a focus on providing solutions to the financial hardships facing Americans rather than pushing the financial services industry into offering one-size-fits-all products. He argued that while late fees are disliked, they encourage better payment history which can lead to improved credit scores and lower interest rates.