The U.S. Chamber of Commerce filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) to stop it from implementing a rule that limits credit card late fees. © Shutterstock The suit alleges that the CFPB rule, which caps the limit on late fees at $8, from $30, exceeded its statutory authority in making this ruling and relied on deficient analysis and reasoning. “American consumers benefit from a variety of credit cards that best suit their needs, and a large majority of credit card users understand the requirement to pay their credit card bills on time in addition to the costs that come with a late payment,” Neil Bradley, U.S. Chamber executive vice president, chief policy officer, and head of strategic advocacy, said. “By significantly limiting late fees, the CFPB is not only discouraging responsible credit card use but also imposing higher costs on consumers and limiting choices in credit card options and benefits.” Specifically, the U.S. Chamber and co-plaintiffs are suing the CFPB for: • Violating the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009 by preventing issuers from collecting reasonable and proportional late fees when cardholders don’t pay their bills on time; • Violating the Administrative Procedure Act (APA) by promulgating a final rule that is arbitrary and capricious, relying on secret data collected from only the largest banks for a different purpose and by a different agency; and • Issuing the rulemaking with funds drawn in violation of the U.S. Constitution’s Appropriations Clause.
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