CFPB's Late-Fee Review May Produce More Politics Than Policy, Attorney Says
By CU Today Staff —
WASHINGTON—The CFPB's decision to reopen its review of credit card late fees is more likely to produce a lengthy fact-finding process than meaningful regulatory change, according to one attorney who follows the Bureau's rulemaking closely.
Brandy Bruyere, a partner with Honigman LLP, said she is skeptical the Bureau's newly announced request for information will ultimately lead to significant policy changes. "Overall I'm not convinced much will come of this," Bruyere said. "I suspect this kind of process might lead to a new fact-gathering process that is a long-term project, and should the party in power in the White House shift in 2028, there would just be a stall or a shift in direction."
As CUToday.info reported earlier, the CFPB has sent a request for information on credit card late fees and late payments to the White House for regulatory review, signaling renewed interest in the issue after a federal court blocked the Biden administration's effort to cap most late fees at $8. According to Law360, the Bureau appears to be pursuing a preregulatory information-gathering process before deciding whether to propose another rule.
Bruyere also questioned whether late fees are the most significant affordability issue facing consumers.
"Not to be cynical, but this may just be a way for the administration to manufacture a talking point that the administration cares about what has been dubbed the 'affordability crisis' with low impact," she said. "It seems doubtful that credit card fees are the real barrier to Americans making ends meet as compared to daily costs like gas prices, grocery expenses and other basic day-to-day necessities."
Originally reported by CU Today.