Washington, D.C.: In response to President Biden promoting the Consumer Financial Protection Bureau’s new credit card late fee price cap at the White House last week, the Consumer Choice Center signed a coalition letter to the president and the CFPB urging them to reconsider the rule. The letter is signed by 31 groups and advocacy organizations dedicated to promoting pro-growth, pro-consumer policies.
“History indicates that consumers are the ones who bear the brunt of regulations like this one because, to offset the resulting costs, financial institutions ultimately impose new fees and higher interest rates while reducing Main Street’s credit access,” the letter stated, “For instance, the Durbin Amendment to the Dodd-Frank Act capping interchange fees on debit cards led to the elimination of free checking accounts, raised minimum balance requirements, and increased maintenance fees. Your new late fee cap will similarly increase financial institutions’ operational costs, which American consumers will again inevitably bear.”
The letter also highlighted how the Small Business Administration’s Office of Advocacy noted the CFPB refused to “properly consider the impact this rule will have on small entities” despite courts holding that agencies must do so before certifying a rulemaking.
CC’ed on the letter were Sens. Sherrod Brown and Tim Scott (Chair/Ranking Member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs); Reps. Patrick McHenry and Maxine Waters (Chair/Ranking Member of the U.S. House Financial Services Committee), and Reps. Roger Williams/Nydia Velázquez (Chair/Ranking Member of the U.S. House Small Business Committee).
The letter’s signatories include Ed Martin, Phyllis Schlafly Eagles; Grover Norquist, Americans for Tax Reform; John Berlau, Competitive Enterprise Institute; Cameron Shelby, Heartland Impact; Brent M. Gardner, Americans for Prosperity; Karen Kerrigan, Small Business and Entrepreneurship Council; Tom Schatz, Citizens Against Government Waste; Gerard Scimeca, Consumer Action for a Strong Economy; Brian Garst, Center for Freedom & Prosperity; Isaac Schick, American Consumer Institute; Stephen Kent, Consumer Choice Center; Patrick Brennen, Southwest Policy Institute; Hadley Heath Manning, Independent Women’s Voice; Terry Schilling, American Principles Project; George Landrith, Frontiers of Freedom; Saul Anuzis, 60 Plus Association; David Williams, Taxpayers Protection Alliance; Paul Gessig, Rio Grande Foundation; Jeff Mazzella, Center for Individual Freedom; Ryan Ellis, Center for a Free Economy; Phil Kerpen, American Commitment; Seton Motley, Less Government; Dan Perrin, HSA Coalition; Chuck Muth, Citizen Outreach; Wendy Darmon, Palmetto Promise Institute; Judson Phillips, Tea Party Nation; Richard Manning, Americans for Limited Government; Carol Platt Liebau, Yankee Institute; Marcos Lopez, Nevada Policy Institute; Mike Stenhouse, Rhode Island Center for Freedom and Prosperity; and Sal Nuzzo, James Madison Institute.
You can view the letter HERE.