Scott Works to Overturn CFPB’s Credit Card Fee Rule
Washington, D.C. – Today, Ranking Member Tim Scott (R-S.C.) introduced a measure to overturn the Consumer Financial Protection Bureau’s (CFPB) rule capping credit card late penalties. Ranking Member Scott’s Congressional Review Act (CRA) resolution has the support of Republicans on the Senate Banking Committee and from members across the Republican conference.
Senators John Thune (R-S.D.), John Barrasso (R-Wyo.), Jerry Moran (R-Kan.), John Boozman (R-Ark.), Steve Daines (R-Mont.), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), Marsha Blackburn (R-Tenn.), Kevin Cramer (R-N.D.), Mike Braun (R-Ind.), Bill Hagerty (R-Tenn.), and Katie Britt (R-Ala.) all joined the Ranking Member on the resolution, arguing the CFPB’s rule will decrease the availability of credit card products for those who need it most, raise rates for many borrowers who carry a balance but pay on time, and increase the likelihood of late payments across the board.
“While Americans struggle to keep pace with record inflation under President Biden, now is the wrong time to play political games that limit access to credit. But that’s exactly what the CFPB’s rule to limit credit card late penalties will do – it will decrease the availability of credit card products and important financial services, particularly for Americans who need them most. Lawful and contractually agreed upon payment incentives promote financial discipline and responsibility, and this rule shows that the CFPB is more focused on scoring political talking points than policies that protect consumers,” said Ranking Member Scott.
The CRA resolution has the support of the Consumer Bankers Association, America’s Credit Unions, Independent Community Bankers of America, Bank Policy Institute, American Bankers Association, Americans for Tax Reform, Competitive Enterprise Institute, and the U.S. Chamber of Commerce.
Background:
In April 2023, Ranking Member Scott led eight Republicans on the Senate Banking Committee in a letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra criticizing the agency’s attempt to demonize commonsense incentives that promote financial responsibility while highlighting the harms the rule would have on the cost and availability of credit for American consumers.
At a June 2023 committee hearing, Ranking Member Scott admonished Director Chopra’s public pressure campaign that mislabels legitimate payment incentives as “junk fees” or “illegal fees,” noting that, “this sweeping initiative lumps legitimate, standard credit card late fees in with the White House’s political efforts to bring down fees in other sectors.”
In March, when the CFPB finalized their credit card late fee rule, Ranking Member Scott vowed to fight the rule to “continue delivering for those who need it most.” Today’s introduction of the CRA resolution will protect access to credit card products for low-income consumers and prevent interest rate increases for responsible borrowers.
###
Next Article Previous Article
