Rep. Barr Requests GAO to Study Potential Impacts of CFPB’s Credit Card Late Fee Proposed Rule
Dear Mr. Dodaro,
I write to request that the Government Accountability Office (GAO) study the potential impacts of the Consumer Financial Protection Bureau’s (CFPB) Credit Card Penalty Fees proposed rule and review the adequacy of the CFPB’s analysis of those impacts.
On February 1, 2023, the CFPB issued a notice of proposed rulemaking to limit the ability of companies to charge late fees associated with credit card missed payments. The proposed rule would (1) reduce the safe harbor dollar amount for late fees to $8 from its current level of $30 for a first violation and $41 for a subsequent violation within the next six billing cycles; (2) provide that the current section that allows for annual inflation adjustments for the safe harbor dollar amounts would not apply to the late fee safe harbor amount; and (3) provide that late fee amounts must not exceed 25 percent of the required payment.
