ICBA, groups request comment extension on late-fee proposal

ICBA and other groups asked the Consumer Financial Protection Bureau to extend the comment deadline on its proposed rule on credit card penalty fees by 45 days, to June 18.

Extension Request: In a joint letter, the groups said the CFPB is proposing novel and unanticipated amendments to Regulation Z and has not responded to their Feb. 28 request for a 60-day extension.

Proposed Rule: Among its provisions, the CFPB’s late-fee proposal would lower the immunity provision dollar amount for late fees to $8, end the annual inflation adjustment, and cap late fees at 25% of the required minimum payment.

Previous Pushback: ICBA raised concerns with the late-fee proposal when it was introduced in February and has pushed back against previous guidance and remarks suggesting that fully disclosed overdraft protections may be “illegal.”