The House Financial Services Committee voted 28-22 to advance a resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) credit card late fee final rule via the Congressional Review Act.
The California and Nevada Credit Union Leagues and America’s Credit Unions (ACU) strongly support the resolution, which has also been introduced in the U.S. Senate.
Ahead of the vote, America’s Credit Unions President and CEO Jim Nussle called the final rule “misguided” and argued it “clearly demonstrates a misunderstanding of how credit cards work.”
“While big banks will likely increase interest rates to make up for reduced revenue, credit unions have limited revenue options. The impact on underserved communities will be substantial if credit unions are forced to leave the credit card market. The result of the unintended consequences of this rule will outweigh any potential positive effects,” Nussle wrote.
The CFPB finalized the rule in March, capping credit card late fees at $8 and eliminating the automatic annual inflation adjustment for the threshold.
ACU will continue to highlight consequences of this rule and encourage the House and Senate to pass this resolution.
