FOR IMMEDIATE RELEASE
Contact: Ralph Nader or Zachary Wathen at: (202) 387-8030
or by email at [email protected]
New Report Sounds Alarm on Cashless Economy and Credit Exploitation: Freedom, Privacy, and Consumer Power at Stake
Washington, D.C. — As the U.S. economy barrels toward a digital future, a new report from the Center for Study of Responsive Law, Ensuring Payment Freedom: Cash and Credit Reform in the Digital Era, warns that the elimination of cash and unchecked credit card practices are threatening core consumer rights—including privacy, autonomy, and equal access to commerce.
The report argues that the shift toward cashless systems is a structural change that deepens financial exclusion and shifts power away from individuals. Cash remains a critical tool for millions of Americans, particularly those who are unbanked, underbanked, or living paycheck to paycheck. These people and others are being systematically pushed out of the cash-check economy by institutions that refuse to accept paper currency and steer consumers into digital platforms with built-in fees, surveillance, and restrictions.
“This is more than just about payment options—it’s about freedom, control over one’s money, privacy, and dignity,” said consumer advocate Ralph Nader, founder of the Center. “The lower people’s income, the more likely they use cash for most purchases, but both the corporations and the government are to blame for tightening the screws to coerce people into the credit-debt economy.”
The report also highlights how the credit card industry profits from this anti-consumer transition by luring consumers into easy access to credit—with high interest rates, hidden fees, and punitive fine print contracts. Americans are increasingly locked into a debt cycle driven by one-sided terms, aggressive data collection, and limited recourse.
“All it takes is swiping your card and pushing buttons,” Nader said. “And you’re in a world of easy credit… and high interest rates.”
This financial transformation is not neutral—it benefits large corporations and data brokers while penalizing consumers who prefer or depend on cash. Many of these shifts are happening quietly, such as government-mandated direct deposit systems for Social Security or the growing number of retailers experimenting with cashless-only policies—sometimes in defiance of local laws requiring acceptance of legal tender.
Through a detailed analysis of payment systems and credit access, the report lays out a vision for a more equitable financial future—one where digital innovation does not come at the cost of basic consumer protections and the right to pay on your own terms.
“Cash is not just legal tender—it’s a form of economic self-determination,” said Nader. “And the ever-increasing loss of consumer freedom is a daily work in regress.”
A digital version of the report, Ensuring Payment Freedom: Cash and Credit Reform in the Digital Era, is available at csrl.org/cashlessrpt