WASHINGTON—Resolutions to nullify the CFPB’s credit card late fees rule via the Congressional Review Act (CRA) have been introduced in the Senate by Sen. Tim Scott (R-SC) and Rep. Andy Barr (R-KY).
As CUToday.info reported earlier, the trade group’s Carrie Hunt had indicated it would be supportive of such a measure. The CRA gives Congress the power to overrule a regulation.
“The CFPB’s misguided final rule on credit card fees clearly demonstrates a misunderstanding on how credit cards work,” America’s Credit Unions President/CEO Jim Nussle said in a statement. “Credit unions work to empower their members’ decision making and clearly define their late fees to suit the needs of their membership.”
What Rule Does
The CFPB finalized the rule in March, which also eliminates the automatic annual inflation adjustment for the $8 threshold.
In addition to concerns that the rule will have a disproportionate impact on low- and middle-income borrowers, America’s Credit Unions said it believes the CFPB’s rulemaking process was flawed, as the Bureau did not seek input from small financial institutions as required by law.
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