Lawmakers press CFPB’s Chopra on credit card fee caps, small-business reporting

Consumer Financial Protection Bureau Director Rohit Chopra appeared before the House Financial Services Committee today for the first of two congressional oversight hearings this week, during which he fielded questions from lawmakers skeptical of several bureau initiatives, including proposed rulemaking to limit credit card late fees.

“The CFPB credit card late fee proposed rule attempts to help a small number of credit card customers at the expense of a vast majority of other cardholders who never pay late, which the CFPB’s own data and report indicates is 74% of all Americans with credit cards will not benefit from reduced fees,” Rep. Ann Wagner (R-Mo.) said. “And according to the proposed rule, they could experience, and I quote, ‘higher maintenance fees and lower rewards.’”

Chopra responded that the CFPB analysis contained “different permutations” on the effects on cardholders. He was also pressed about the bureau’s final rule on small-business lending data collection, with the House scheduled to vote on a Congressional Review Act resolution that would overturn the rule if it is also signed by the president. The resolution was passed by the Senate with bipartisan support. Chopra said the bureau would abide by the resolution if it is enacted into law.