March 01, 2023

NAFCU, trades request comment deadline extension on CFPB’s credit card late fees proposal

CFPBNAFCU, along with other financial industry advocacy groups, Tuesday submitted a letter to the CFPB requesting the agency provide an extension on its comment period regarding its notice of proposed rulemaking (NPRM) on credit card late fees, which was announced earlier this month.

“The NPRM proposes significant changes to, and requests wide-ranging comments on, long-standing provisions of Regulation Z,” wrote the groups. “Determining the impact of the proposed amendments to Regulation Z on consumer cardholders using data and models – information lacking from the NPRM – will require considerable time to attempt to gather and analyze relevant information to respond meaningfully to the proposal.”

The organizations also noted that failure to provide the industry time to consider the proposed rule would likely result in “an incomplete administrative record and arbitrary agency action, and likely would result in unintended consequences, adverse consumer and small business impact, and ultimately, create flawed public policy.”

Calling out the CFPB’s non-adherence to its obligations under the Small Business Regulatory Enforcement Fairness Act (SBREFA), the groups pointed out the agency’s own lack of data on the proposal’s impacts. NAFCU has urged the CFPB to convene an SBREFA panel to consider the impact the rule would have on small entities. 

NAFCU encourages credit unions to offer feedback via a survey to support NAFCU in its advocacy to push back on the CFPB’s proposal. The feedback provided by the survey is critical to NAFCU’s efforts to educate the CFPB on how this rulemaking would hurt the credit union industry and the 135 million members they serve.

Read the letter and take the survey. NAFCU will continue its strong advocacy against this proposed rule to ensure credit unions and their members do not lose access to safe, affordable credit options.