Washington, D.C. — Bill Hulse, vice president of the U.S. Chamber's Center for Capital Markets Competitiveness issued the following statement today regarding the Consumer Financial Protection Bureau’s proposed rule amending credit card issuers’ late fee regulations.
“Today’s actions by the Consumer Financial Protection Bureau flatly ignore the Congressional and regulatory history regarding the establishment of regulations surrounding the collection of late fees by credit card issuers. Worse, it punishes responsible consumers who pay their credit card bills on time by forcing them to subsidize the costs of those who don’t.
“Credit card issuers provide robust disclosures, as required by law, regarding late fees which consumers agree to at the time of enrollment. Late fees not only ensure prompt repayment but also help consumers avoid additional interest accruing on unpaid balances and establish good credit history. Ultimately, what the American credit card user can expect from this rule change is higher costs and reduced choices as a direct result of the CFPB imposing more red tape on businesses.”