CFPB must convene SBREFA panel for credit card fee rulemaking
CUNA and other organizations called on the Consumer Financial Protection Bureau to comply with its statutory obligations under the Small Business Regulatory Enforcement Fairness Act (SBREFA) as part of a planned rulemaking concerning credit card penalty fees. SBREFA requires the CFPB to convene and chair a Small Business Review Panel if it is considering a proposed rule that could have a significant economic impact on a substantial number of small entities.
“The Associations want to reiterate comments made in our comment letter to the ANPR, which demonstrated that any reduction in or elimination of the late fee safe harbor would have a significant adverse impact on a substantial number of financial institutions with less than $750 million in assets (the threshold having been raised to $850 million since in the time since)," the letter reads. "Accordingly, if the Bureau proceeds with rulemaking, as is suggested in the Unified Agenda, it must comply with its statutory obligations under SBREFA."
CUNA responded in August to the CFPB's Advance Notice of Proposed Rulemaking regarding credit card late fees and late payments, saying any reduction in or elimination of the late fee safe harbor would have a significant adverse impact on a substantial number of credit unions.
The CFPB’s Unified Rulemaking Agenda issued earlier this month indicates the bureau lists a Notice of Proposed Rulemaking on these fees, and the organizations note, “due to the potential significant impact on a substantial number of small institutions of the rulemaking announced in the Unified Agenda, the Bureau must convene a SBREFA panel to consider the effect of any proposed amendments on small entities.”