Tuesday, November 29, 2022

CFPB to target credit card fees

CFPB Director Rohit Chopra earlier this week announced an advance notice of proposed rulemaking focusing on credit card late fees.

The ANPR reopens a rule that the Federal Reserve Board enacted in 2010 that provides banks with a safe harbor on the amount they can charge when a cardholder pays late and which provided for annual adjustments based on inflation.  In remarks today that suggested that he views current fees as “excessive,” Chopra indicated that CFPB would scrutinize how banks that rely on that safe harbor set their fees and how banks are immunized from enforcement when following the government’s rule.  This review could potentially lead to a revision in Regulation Z, which implements the CARD Act and Truth in Lending Act.

You can read more about this story in the ABA Banking Journal.