League Files Comment Letter on Credit Card Late Fees; Notes 'Negative Consequences' of CFPB Proposal
Your League today filed a comment letter with the Consumer Financial Protection Bureau on a proposal that slashes what is effectively a regulatory cap on most credit card late fees.
The CFPB proposed cutting the "immunity provision" for late fees to $8 for a missed payment and ending the automatic annual inflation adjustment. It also seeks to ban late fee amounts above 25% of the consumer's required payments.
In our letter, your League noted that the Bureau's proposal fails to consider the negative consequences likely to result from the proposal, including interest rate hikes and changes to other terms and fee amounts. The proposal also does not take into account credit unions' member-owned, not-for-profit business model, which incents credit unions to keep fees reasonable and proportionate to the costs of providing the service.
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