Credit/Adobe Stock.
Nearly a week apart, two lawmakers introduced bills in the U.S. Senate and House of Representatives as an attempt to nullify the CFPB's recent final rule that dropped typical credit card late fees of $32 and capped them at $8.
The rule, which was finalized in March, is now being challenged in the Senate as Sen. Tim Scott (R-S.C.) introduced his version of the "Resolution of Disapproval for the Consumer Financial Protection Bureau's Credit Card Late Fee Rule" on Monday. This is a similar bill to one that was introduced late last month in the House by Rep. Andy Barr (R-Ky.).
If passed by both branches, the resolution would not only show congressional disapproval of the rule, but would nullify implementation of the rule.
In separate letters sent to Barr and Scott on Monday, America's Credit Unions President/CEO Jim Nussle expressed his support of the lawmakers' efforts to nullify the rule.
Jim Nussle "The CFPB's misguided final rule on credit card fees clearly demonstrates a misunderstanding on how credit cards work," Nussle wrote. "Credit unions work to empower their members' decision making and clearly define their late fees to suit the needs of their membership. An $8.00 late fee does nothing to encourage responsible consumer behavior. We would note that various governmental entities, including the federal government, set late fees above that $8.00 level for a wide range of payments."
The CFPB's rule threshold only applies to the nation's largest credit union, Navy Federal Credit Union of Vienna, Va. ($170 billion in assets, 13.3 million members). In March, Nussle said he believed the rule will hurt consumers by potentially trapping "millions of consumers in a cycle of debt instead of fulfilling their intended purpose of protection."
In a March 29 letter to Rep. Barr, Independent Community Bankers of America President/CEO Rebeca Romero Rainey threw her support behind Barr's bill and similarly stated the rule's potential unintended consequences.
"ICBA believes the CFPB rule will carry unintended consequences for American consumers," the letter stated. "Specifically, it could result in consumers making more late payments and incurring additional interest charges that would harm them in the long term. Credit card late fees — which are clearly disclosed — deter late payments and help offset the significant costs of collection for issuers. Notably, late fees are widely used by all types of businesses — and by federal, state and local governments — to encourage timely payment."
Rainey continued, "Thank you for introducing this resolution of disapproval under the Congressional Review Act. Passage of this resolution would nullify a rule that will interfere with the operation of a free market, fix prices and limit consumer choice."
The credit union trade organization also supported the lawsuit filed last month to seek a preliminary injunction to stop implementation of the CFPB's credit card fee late rule. The U.S. Chamber of Commerce filed that lawsuit just days after the rule was finalized.
Chances of the resolutions passing appeared to be slim as there are only 16 more weeks left on the legislative calendar before the election in November.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
