WASHINGTON— Before proceeding with any rulemaking regarding credit card late fees, NAFCU, CUNA and other financial trade groups have written to the CFPB to remind the agency of its obligations under the Small Business Regulatory Enforcement Fairness Act (SBREFA).
As CUToday.info previously reported, the CFPB last year issued a notice of proposed rulemaking (ANPR) regarding credit card and late fees in an effort to reduce the $12 billion in fees collected by financial institutions each year.
“Under SBREFA, the CFPB must convene and chair a Small Business Review Panel if it is considering a proposed rule that could have a significant economic impact on a substantial number of small entities,” the letter states.
According to the letter, the purpose of the panel is to “collect advice and recommendations from small entities or their representatives that are likely to be subject to the regulation that the CFPB is considering proposing.”
‘Skipped the Process’
The Bureau, which is familiar with and has followed the SBREFA process with its Section 1033 rulemaking, according to the organizations, has completely skipped this process with its credit card late fees proposal.
Citing the significant impact this rulemaking would have on smaller institutions, the groups reiterated that “any regulatory change to late fees will ultimately impact the entire card market and bring with it the potential to change the competitive position of small depository institutions in ways that must be explored through the SBREFA process.”
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