Washington, D.C. (May 4, 2023) — The Independent Community Bankers of America (ICBA) called on the Consumer Financial Protection Bureau to withdraw its proposed rule on credit card fees for late payments. In a new comment letter, ICBA said the proposed rule sends the wrong message that punctual credit card payments are not a significant priority, which could result in more late payments and harm consumers in the long term.
“As relationship bankers, community banks offer credit cards as a service to their customers under contracts voluntarily entered into by these consumers,” ICBA President and CEO Rebeca Romero Rainey said today. “The CFPB’s proposed rule would saddle community banks with an arbitrary, one-size-fits-all rule that would drive many community banks out of the credit card market, limiting consumer choice in credit cards.”
ICBA also said various public statements from the White House and the CFPB suggest the outcome of the proposed rule was predetermined, which violates the Administrative Procedure Act’s restrictions on arbitrary and capricious actions by federal regulatory agencies. Further, ICBA said, the CFPB clearly rushed the proposed rule following the White House’s advertising of the proposal, as evidenced by the bureau’s decision to bypass the Small Business Regulatory Enforcement Fairness Act process despite repeated ICBA requests.
ICBA and community bankers intend to continue calling on the CFPB to withdraw its proposed rulemaking to mitigate the negative impact on access to credit in local communities and to ensure the bureau follows proper administrative procedure.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers' dreams in communities throughout America. For more information, visit ICBA's website at www.icba.org.