CFPB SEEKS BROAD COMMENT ON NEW CREDIT CARD LATE FEE RULEMAKING

CFPB SEEKS BROAD COMMENT ON NEW CREDIT CARD LATE FEE RULEMAKING

The Consumer Financial Protection Bureau (“CFPB”) issued an Advance Notice of Proposed Rulemaking (“ANPR”) on credit card late payment fees, returned payment fees and the fee safe harbor under Truth in Lending Act, the CARD Act and Regulation Z. The notice asks for comment from credit card issuers, consumer groups and the public, regarding credit card late fees, late payments and card issuers’ revenue and expenses.

he request for comment is part of the CFPB’s larger “Junk Fee Initiative.” The CFPB trumpets the request for information as “the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees.” CFPB Director Rohit Chopra has testified before Congress that the CPB intends to revisit and update the Regulation Z provisions governing credit card fees. Read More