Nearly two months after it was issued on February 1, the CFPB’s proposal to make significant changes to the Regulation Z rules for credit card late fees was published in today’s Federal Register. The changes include a substantial reduction in the safe harbor amounts and the elimination of the annual inflation adjustments. Comments on the proposal must be received by May 3, 2023.
Earlier this month, the Bank Policy Institute, American Bankers Association, Consumer Bankers Association, Credit Union National Association, and the National Association of Federally-Insured Credit Unions sent a letter to Director Chopra calling on the CFPB to immediately release certain data and analysis on which the Bureau relies to support its proposal. The trade groups assert that the Bureau has a legal obligation to make such information publicly available in order to rely on it.