Joint Trades Support Letter to House for a CRA to Reject the Credit Card Late Fee Rule

Dear Congressman Barr:

The undersigned trade associations write to express our support for H.J.Res. 122, a Congressional Review Act resolution to reject the Consumer Financial Protection Bureau’s (CFPB or Bureau) final rule on credit card late fees. By its own admission, the Bureau’s late fee rule will harm the 74 percent of consumers who pay their credit cards on time by forcing issuers to increase costs to offset delinquencies for those credit card users who pay late or not at all due to the significantly reduced late fee penalty. Even worse, the CFPB’s rule will create long-term harm for the minority of consumers it purports to help. By reducing the short-term cost of paying late for late payers, the CFPB may see a short-term political win– but it is introducing long-term financial risk to those same consumers in the form of higher principal and interest payments and damage to those consumers’ credit histories.

Click here for the full letter.