WASHINGTON—NAFCU, CUNA and several trade associations are calling on the CFPB to provide a 60-day extension to the deadline for its Advance Notice of Proposed Rulemaking (ANPR) on credit card late fees that financial institutions collect.
The ANPR is an effort by the Bureau to sharply reduce the $12 billion financial institutions collect in credit card late fees each year.
“In making this request, the undersigned Associations note that CFPB is choosing to reopen a rule that was enacted by the Board of Governors of the Federal Reserve in 2010 with little controversy and has continued to operate without substantial amendment through the tenure of former CFPB leaders,” wrote the groups. “The most recent adjustment to the allowable late fees occurred in just the last year, when the CFPB under your leadership published a final rule setting the current first instance safe harbor ($30) and the second instance safe harbor ($41).”
‘Unexpected Nature’
The groups also stated that part of the request is due to the ANPR’s “unexpected nature,” given that the CFPB regulatory action on fees was not included in its spring 2022 regulatory agenda, which was published before the ANPR was announced.
The groups further argued the information requested through the ANPR is “complex and comprehensive, requiring significant analysis to permit a meaningful contribution to the public comment record.”
The groups concluded by telling the Bureau the 30-day comment period is an insufficient timeline to plan and execute production of a large volume of data.