America’s Credit Unions supports a lawsuit filed last week by the U.S. Chamber of Commerce and other financial groups seeking a preliminary injunction to stop implementation of the CFPB’s credit card fee late rule. The CFPB finalized the rule last week, with America’s Credit Unions President/CEO Jim Nussle saying the rule will dismantle consumers protections and limit access to credit.
The lawsuit, filed in the Northern District of Texas, claims the CFPB’s rule:
- Violates the Credit Card Accountability Responsibility and Disclosure Act by preventing issuers from collecting reasonable and proportional late fees when cardholders don’t pay their bills on time;
- Violates the Administrative Procedure Act by promulgating a final rule that is “arbitrary and capricious,” and relies on data collected from only the largest banks for a different purpose; and
- Was issued with funds drawn in violation of the U.S. Constitution’s Appropriations Clause.
The rule is scheduled to go into effect 60 days after publication in the Federal Register. America’s Credit Unions will continue to fight back against the CFPB’s misguided efforts that restrict access to safe, affordable credit and support efforts to hold the bureau accountable.
