ICBA and other groups expressed support for House and Senate resolutions to nullify the Consumer Financial Protection Bureau’s final rule to cut credit card late fees.

Details: The resolutions—S.J.Res. 70 from Sen. Tim Scott (R-S.C.) and H.J.Res. 122 from Rep. Andy Barr (R-Ky.)—would express congressional disapproval of the rule and nullify its implementation.

Joint Letters: In letters to Scott and Barr, the groups said the CFPB rule would harm consumers who pay their credit cards on time by forcing issuers to increase costs while introducing long-term financial risk to the consumers it purports to help.

ICBA Advocacy: ICBA has previously expressed its support for the measures in letters to Scott and Barr. In a national news release after the rule’s release, ICBA said the rule sends the wrong message that punctual credit card payments are not a significant priority.

Rule Details: The CFPB rule:

  • Cuts the credit card late fee safe harbor under the CARD Act from the current levels of $30 for the first violation and $41 for subsequent violations to $8, without inflation adjustments.

  • Applies to issuers with 1 million or more open accounts, which allows the CFPB to avoid analyzing the rule under the Small Business Regulatory Enforcement Fairness Act.

  • Allows covered issuers to charge fees above the threshold as long as they can prove the higher fee is necessary to cover their collection costs.