CFPB headquarters. (Source: Shutterstock)
Since early February, officials with CUNA and NAFCU have raised alarms over a proposal by the CFPB to "curb excessive credit card late fees." As Wednesday's deadline approaches for public comments on the proposal, credit union leaders said they are finalizing their official comment letters objecting to the bureau's "unnecessary" move to change credit card fee structures in a way that could severely damage credit unions, especially the smaller lenders.
Details of the CFPB's proposed rule include the following:
- Lower the immunity provision dollar amount for late fees to $8 (this amount is down from $30 for a first-time late payment and $41 for subsequent late payments).
- End the automatic annual inflation adjustment.
- Cap late fees at 25% of the required minimum payment.
During a Monday morning call, CUNA Deputy Chief Advocacy Officer and Managing Counsel Alexander Monterrubio reemphasized that what the CFPB is proposing "is a pretty significant change."
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
