Don’t be late! As of April 15, the Consumer Financial Protection Bureau’s (CFPB) rule capping credit card late fees has officially been vacated—a win for businesses and responsible consumers alike. Your Wyoming Chamber, in partnership with the U.S. Chamber and other local advocates, has pushed back on this rule from the start. Why? Because consumers who pay on time shouldn’t foot the bill for those who don’t.
Aside from the unfairness of this proposed rule, it violated several laws, leading to a lawsuit from the U.S. Chamber in early March for the following reasons:
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Violation of the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009
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Violation of the Administrative Procedure Act (APA)
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Funds used to issue the rule were drawn in violation of the U.S. Constitution’s Appropriations Clause
WY it Matters: Under the CFPB’s proposed new rules, credit care late fee regulations would be fundamentally changed. Existing credit card holders would have to take on the burden of higher costs to make up for the reduced late fees, and choices for new credit cards would be drastically reduced. Fewer benefits would be available, including discounts on certain types of purchases, airline miles, cashback rewards, and more. Their claim that consumers are unaware of late fees doesn’t hold up—thanks to the Truth in Lending Act, credit card terms must be disclosed upfront.
This decision restores balance to the system, and your Wyoming Chamber will continue to defend pro-business policies that protect consumers and support economic growth.
