ICBA Statement on CFPB Rulemaking on Credit Card Late Fees

Washington, D.C. (March 5, 2024) — Independent Community Bankers of America President and CEO Rebeca Romero Rainey released the following statement on today’s Consumer Financial Protection Bureau final rule on credit card fees for late payments.

"While ICBA and the nation’s community banks are encouraged that the CFPB’s final rule on credit card fees for late payments exempts community banks due to their relationship-based business model, we remain concerned about the unintended consequences of the rule.

“The CFPB’s rule sends the wrong message that punctual credit card payments are not a significant priority, which could result in consumers making more late payments and incurring additional interest charges that would harm them in the long term. Credit card late fees — which are clearly disclosed — deter late payments and help offset the significant costs of collection for issuers. Generally, late fees are used by businesses — and by federal and state governments — to encourage timely payment.

“Further, while we generally oppose regulatory efforts to regulate the free market and set prices that interfere with competition and consumer choice, relationship-based community banks offer credit cards as a service to their customers under contracts voluntarily entered into by these consumers and are rightly not targeted by today’s rulemaking.

“ICBA and the nation’s community bankers look forward to fully reviewing today’s rulemaking and working with the CFPB to minimize the negative impact of its policies on consumers’ access to credit in local communities.”

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.