Enforcement of pair of rules face abandonment by CFPB

The Consumer Financial Protection Bureau, in April, vacated and/or abandoned enforcement of a pair of rules.

On April 14, the CFPB reached an agreement with the American Bankers Association and other plaintiffs to settle a lawsuit over its rule on credit card late fees. The CFPB last year issued a final rule to lower the safe harbor dollar amount for late fees to $8, eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type, and eliminate the annual inflation adjustment for the safe harbor amount that was provided by the Federal Reserve in 2010.

Additionally, the Bureau said in mid-April it would not enforce a Biden-era rule requiring certain non-bank lenders to register information about their company with the bureau along with any agency or court orders concerning consumer protection violations.