comment letter

CBA Comment on Docket No CFPB-2023-0010 RIN 3170-AB15


The Consumer Bankers Association (CBA) appreciates the opportunity to submit comments to the Consumer Financial Protection Bureau (the Bureau) in response to the notice of proposed rulemaking on credit card penalty late fees (the NPRM).  In addition to the comments shared in the letter CBA submitted jointly with several other trade associations, CBA writes separately to express significant concerns with the Bureau’s Dodd-Frank Act section 1022(b) analysis (“1022” or “1022 Analysis”) contained within the NPRM.

This comment letter is narrowly focused on addressing the deficiencies in the Bureau’s 1022 cost-benefit analysis for this rulemaking. In general, the Bureau did not conduct a thorough and rigorous analysis of the empirical economic literature on the effects of late fees nor conduct its own rigorous analysis with statistically significant findings in a transparent and consistent manner.  The Bureau’s flawed assumptions, overly narrow estimations, and deficient analyses have resulted in the Bureau reaching incorrect conclusions about the benefits and harms to consumers, as well as the costs issuers face in the marketplace.  The Bureau’s errors in conducting the required 1022 cost-benefit analysis have resulted in proposals that, contrary to the Bureau’s stated intent, will harm consumers.  These missteps are magnified by actions taken by the Bureau that suggest it is unwilling to alter course based on public feedback to help protect consumers. 

To read the full comment letter, click here.


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