Senate Banking Committee Ranking Member Tim Scott (R-S.C.) and 12 Republican senators on Monday introduced a Senate joint resolution to overturn the CFPB rule to lower the safe harbor amount for credit card late fees. The Congressional Review Act resolution would overturn the CFPB rule if passed by both houses of Congress and signed by the president.
In a statement, Scott said the CFPB rule will decrease the availability of credit card products for those who need it most, raise rates for many borrowers and increase the likelihood of late payments across the board. “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,” he said.
ABA is among the supporters of the resolution. The association joined five other business groups in March in a lawsuit seeking to overturn the rule, arguing the CFPB exceeded its statutory authority and offered deficient analysis and reasoning for the rule to achieve a pre-ordained outcome.
