Coalition Letter to President Biden and CFPB on Small Business Harms of Added Fees”

By SBE Council at 17 October, 2023, 4:18 pm

In response to President Biden promoting the Consumer Financial Protection Bureau’s (CFPB’s) new credit card late fee price cap at the White House, SBE Council 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.

Read the full letter here.