Official publication buys credit unions’ time to respond to CFPB credit card fee limitations
Published by: Sean Brown
April 6, 2023 | Regulatory
People, families, businesses, and community needs are best served when there is a balance between the impact and cost of regulation and the benefits it provides consumers. Recently, the League and Ohio’s credit unions have been fighting to prevent a proposed CFPB rule that would (1) adjust the safe harbor dollar amount for late fees to $8 and eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type; (2) provide that the current provision that provides for annual inflation adjustments for the safe harbor dollar amounts would not apply to the late fee safe harbor amount; and (3) provide that late fee amounts must not exceed 25 percent of the required payment.
The Ohio Movement has already driven 40 Calls-to-Action in response to this proposed rule. Since our work started, the proposed rule has subsequently been officially published in the Federal Register, setting a final due date of May 3, 2023.
Help the League make another push to explain to the CFPB that cards, compliance, and cyber security have a cost. Get involved and oppose this CFPB proposal by submitting a pre-written or customized message reminding the agency how people, families, businesses, and community needs are best served when there is a balance between the impact and cost of regulation and the benefits it provides consumers.
Contact Sean Brown for questions or assistance.