The Honorable Rohit Chopra, Director, Consumer Financial Protection Bureau (May 17, 2023)

Summary

A letter dated May 17, 2023 from Roger Williams, Chairman of the Committee on Small Business, to Rohit Chopra, Director of the Consumer Financial Protection Bureau, inquiring about the Bureau's recent rule change to credit card penalty fees. The letter says the rule change would lower the amount consumers can owe for late payments, end the automatic annual inflation adjustment, and cap late fees at 25 percent of the required minimum payment. It says it appears that the CFPB may not have properly considered small entities during the rulemaking process. The letter requests information as soon as possible, including the statutory requirements to examine the rule's impact on small businesses and the alternatives considered to lessen the impacts.

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Full text

                                                May 17, 2023

The Honorable Rohit Chopra
Director
Consumer Financial Protection Bureau
1700 G Street NW
Washington, D.C. 20552

Dear Director Chopra:

         The House Committee on Small Business (the Committee) writes to inquire about the
Consumer Financial Protection Bureau’s (CFPBs) recent rule change to credit card penalty fees.
This rule change would lower the amount consumers can owe to crediting institutions for late
payments to $8, end the automatic annual inflation adjustment, and cap late fees at 25 percent of
the required minimum payment.1 In fact, it seems that this change will negatively impact small
credit firms the most and restrict access to credit in local communities.2 It appears that the CFPB
may not have properly considered small entities during this rulemaking process.

       It is important for agencies to properly consider small businesses interests, which make
up 99.9 percent of all businesses in the United States, when passing any new rule. America’s
small businesses deserve to have their voices heard and considered. We therefore request the
following information as soon as possible but no later than May 31,2023:

    1. What are your statutory requirements to examine this rule’s impact on small businesses?

    2. How many small businesses will be impacted by this rule?

    3. What additional compliance costs on small businesses are associated with this new rule?

    4. Where can small businesses go to examine your analysis on the impacts this rule will
       have on their operations?

    5. What alternatives have been considered to lessen the impacts on small businesses?

       To schedule the delivery of your response or ask any related follow-up questions, please
contact Committee on Small Business Majority Staff at (202) 225-5821. The Committee on

1
 Credit Card Penalty Fees (Regulation Z), 12 C.F.R. 1026 (2023).
2
 Chelsey Cox, Consumer Financial Protection Bureau targets excessive credit card fees in new rule proposal,
CNBC (Feb. 1, 2023).
The Honorable Rohit Chopra
May 17, 2023
Page 2 of 2

Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.”

                                           Sincerely,




                                     Roger Williams
                                         Chairman
                                 Committee on Small Business




cc:    The Honorable Nydia M. Velasquez, Ranking Member
       Committee on Small Business


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