The House Financial Services Committee will mark up a resolution of disapproval of the CFPB’s credit card late fee rule starting Wednesday. America’s Credit Unions wrote in strong support of the resolution—which would void the rule through the Congressional Review Act—prior to the markup.
The rule would cap credit card late fees at $8 and eliminate the automatic annual inflation adjustment for the $8 threshold.
“The CFPB’s misguided final rule on credit card late fees clearly demonstrates a misunderstanding of how credit cards work,” America’s Credit Unions President/CEO Jim Nussle wrote to the committee.
He added that the rule’s safe harbor is arbitrary, unlikely to reduce consumer debt, and would have a disproportionate impact on low to moderate income borrowers by “limiting the availability of safe and affordable products because credit unions and other institutions will be forced to make difficult decisions about their offerings.”
Rep. Andy Barr, R-Ky., introduced the resolution last week, and Sen. Tim Scott, R-S.C., introduced a Senate version.
