Senate Banking Committee Ranking Member Tim Scott (R-S.C.) and 12 Republican senators introduced a Senate joint resolution aimed at overturning the Consumer Financial Protection Bureau's rule that reduces the safe harbor amount for credit card late fees. The resolution, under the Congressional Review Act, would nullify the CFPB rule upon passage by both chambers of Congress and approval by the president.
In a statement, Senator Scott expressed concerns that the CFPB rule would limit access to credit card products for those in need, potentially increase rates for many borrowers and elevate the risk of late payments across the board. “Lawful and contractually agreed upon payment incentives promote financial discipline and responsibility, and this rule shows that the CFPB is more focused on scoring political talking points than policies that protect consumers,” he said.