Bradley attorney Robert Maddox was quoted in American Banker on the Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra’s plans to unwind provisions that have allowed credit card issues to increase late fees annually.
"It appears that he's going for a long-term fix," said Maddox. "If the next administration comes in [they] could just transfer all of the advisory opinions to something else and do away with it."
This rulemaking process could take over a year to complete, but it would not be easily reversed by succeeding directors at the CFPB, but it is a possibility, Maddox indicated.
Under current rules, credit card late fees could rise over 9% next year, but the proposed rule amendments would lower the maximum allowable amounts for late fees to avoid increases next year attributed to inflation.
The full article was published in the American Banker on September 19, 2022.