ICBA to CFPB: Withdraw proposed rule on credit card late fees

ICBA called on the Consumer Financial Protection Bureau to withdraw its proposed rule on credit card fees for late payments.

Wrong Message: In a new comment letter, ICBA said the proposed rule sends the wrong message that punctual credit card payments are not a significant priority, which could result in more late payments and harm consumers in the long term.

Process Violations: ICBA also said:

• Various public statements from the White House and the CFPB suggest the outcome of the proposed rule was predetermined, which violates the Administrative Procedure Act’s restrictions on arbitrary and capricious actions by federal regulatory agencies.

• The CFPB clearly rushed the proposed rule following the White House’s advertising of the proposal, as evidenced by the bureau’s decision to bypass the Small Business Regulatory Enforcement Fairness Act process despite repeated ICBA requests.