The Consumer Financial Protection Bureau (CFPB) has issued a proposed rule on credit card late fees, with the Credit Union National Association (CUNA) having major concerns with the proposal.
CUNA wrote to the CFPB last week urging it to conduct a Small Business Review Panel, as required by statute.
“CUNA strongly opposes this proposal, as any reduction in late fee safe harbors will have a significant negative impact on many small, community-based credit unions,” said Jim Nussle, president and CEO of CUNA. “Not only would this proposal reduce access to safe and affordable open-end credit, but its broad impact clearly warrants the careful consideration of a Small Business Review Panel, and it’s irresponsible for the bureau to bypass its statutory obligations under the Small Business Regulatory Enforcement Fairness Act, which was designed to calculate the impact on small entities.”
Specifically, the proposal would lower the safe harbor to $8 (down from $30 for first time and $41 for subsequent late payments), end the automatic annual inflation adjustment, and cap fees at 25 percent of the minimum payment.
Comments are due 30 days after publication in the Federal Register.