ABA, trade group: CFPB should seek minor updates on credit card rule | ABA Banking Journal

The law requires the Consumer Financial Protection Bureau to seek information from community banks and credit unions with assets of more than $850 million or less. has not moved forward with legislation on credit card penalty bills, because the proposal would have a significant economic impact on a large number of people. the microfinance institutions, ABA and business organizations are the four mentioned again today i a letter to the agency. The group first raised the issue in an August 2022 letter, noting that the Small Business Ethics Enforcement Act requires the CFPB to immediately seek comments on the rulemaking from small banks that may be affected. in the new regulations.

The CFPB last year issued a preliminary notice of proposed rules to review credit card fees charged by financial institutions, which Director Rohit Chopra often derided as “charges bad things.” Most recently, the agency announced plans to issue a proposed rule on the bills this month. In their letter, the groups said that contrary to what is required by SBREFA, the agency did not invite a group of small community representatives, or “SERs,” to provide comments on the proposals of It reviews and suggests ways to lose weight.

“Under SBREFA, the CFPB must convene and chair a small business review committee if it is considering a proposed rule that may have a significant economic impact on a significant number of small businesses.” … In particular, the panel needs to gather advice and recommendations from the small group. organizations or their representatives may be subject to regulations that the CFPB is considering issuing,” the organizations said.

The group noted that of the 805 banks that issue credit cards in the US, more than half have assets of less than $850 million. A reduction in the amount that investors pay for late payments could have serious implications for all media companies and cause them to change their strategies. Business hate, they say. “Any regulatory changes to the old fees will ultimately affect the entire card market and bring the opportunity to change the competitive position of small depository institutions in ways that should be explored through the SBREFA process.”

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