Resolutions to nullify the CFPB’s credit card late fees rule via the Congressional Review Act (CRA) were introduced in the Senate by Sen. Tim Scott, R-S.C., and Rep. Andy Barr, R-Ky., Monday. America’s Credit Unions supports the resolutions as it strongly opposes the rule from the CFPB, which caps credit card late fees at $8.
“The CFPB’s misguided final rule on credit card fees clearly demonstrates a misunderstanding on how credit cards work. Credit unions work to empower their members’ decision making and clearly define their late fees to suit the needs of their membership,” America’s Credit Unions President/CEO Jim Nussle wrote in support of the resolutions.
The CFPB finalized the rule in March, which also eliminates the automatic annual inflation adjustment for the $8 threshold.
In addition to concerns that the rule will have a disproportionate impact on low- and middle-income borrowers, America’s Credit Unions believes the CFPB’s rulemaking process was flawed, as the bureau did not seek input from small financial institutions as required by law.
America’s Credit Unions also supports a lawsuit filed in March seeking a preliminary injunction to stop implementation of the CFPB’s credit card fee late rule. The organization will keep members updated on these efforts.
