April 04, 2023

NAFCU economists break down CFPB late fees proposal in new video

NAFCU’s award-winning research team provided findings from the association’s survey on how the CFPB’s proposed rule to lower the safe harbor of credit card late fees would impact credit unions in a new video. Additionally, the video breaks down the latest economic developments, including the Federal Open Market Committee’s (FOMC) decision to raise the federal funds rate in March.

NAFCU Chief Economist and Vice President of Research Curt Long explained that the average break-even late fee amount for a credit union was $20, as credit unions face higher costs to administer credit card programs than large banks. Of note, the CFPB’s proposed rule aims to lower the safe harbor for credit card late fees to $8.

Long was joined by NAFCU Economist Noah Yosif, who detailed the FOMC’s latest rate hike and how the committee will likely handle monetary policy moving forward. Watch the full video. 

For more economic updates from NAFCU's award-winning research team, view all of NAFCU's Macro Data Flash reports.