CUNA joined other financial services trade organizations Monday in making a second request that the Consumer Financial Protection Bureau (CFPB) extend the deadline for its proposed rule on credit card late fees. The organizations previously requested the extension in February, citing the unexpected amendments to Regulation Z, and the CFPB has not responded.
The organizations request an extension to June 18, 45 days past the current May 3 deadline.
“As stated in our February 28, 2023, comment deadline extension request, the NPRM proposes, and requests comment on, novel and unanticipated amendments to Regulation Z, including for example a late payment fee cap of 25% of the minimum periodic payment,” the letter reads. “The proposed amendments would affect provisions of Regulation Z that have not been substantively amended since 2010.”
The organizations note determining the impact of the proposal—particularly to quantify the impact on consumer cardholders and smaller issuers–requires time, especially since the CFPB calls for commenters to provide data, while citing the failure of industry to provide data to the process.
“A rush to finalize significant changes to a long-standing rule that has endured through CFPB leadership appointed by both political parties, without providing sufficient time for commenters to provide data and other information on consumer and market impacts, would invite scrutiny and the likelihood of future revision, which would not benefit consumers or the market,” the letter reads. “This risk is compounded by the fact that, despite industry feedback and data to the contrary, the CFPB did not convene a small business review panel for this proceeding.
“We again respectfully request that the CFPB give industry and the public sufficient time to provide data-driven comments that will promote sound and durable policy decisions,” it adds.