Lawmakers and regulators at the Consumer Financial
Protection Bureau (CFPB) have received no shortage of communication from trade groups
opposed to measures aimed at changing the credit card landscape.
Many argue these proposals will negatively impact credit
availability or will be ineffective or even detrimental to the people and
businesses they are meant to help.
Learn what industry advocates are saying about these
proposals below:
CBA applauds lawmaker for questioning CFPB late fee rule
The Consumer Bankers Association (CBA) has expressed
opposition to the CFPB’s proposed rule to place an $8 cap on credit card late
fees. The organization recently applauded Rep. Andy Barr (R-Ky.) for urging the
Government Accountability Office (GAO) to examine aspects of the proposal that
could be harmful to consumers and card providers. CBA has released multiple
statements explaining its issues with the proposed rule in addition to this
most recent letter.
ABA reiterates survey supporting stance against late fee
rule
The American Bankers Association (ABA) recently reiterated
its opposition to the rule, pointing to its previously released survey findings
indicating the bureau’s proposal would not motivate many consumers to pay their
credit card bills on time and “more than four in five consumers (83 percent)
said that a $10 late fee would be insufficient to deter them from paying a
credit card bill late.” Read more about the ABA’s views here.
Trades oppose legislation on credit card routing
restrictions
The Independent Community Bankers of America (ICBA) is
urging community banks to write to lawmakers urging them to oppose the Credit
Card Competition Act (S. 1838/H.R. 3881). The bill would allow merchants to
process credit card transactions based solely on which network offers them the
lowest cost through an extension of the Durbin Amendment. In doing so, ICBA
argues the measure would take away the card routing decisions from banks and
consumers.
The trade advocates also argue it would impose significant
costs on community banks, reduce credit access, increase data security risks
and jeopardize valued credit card rewards programs. The ABA also has expressed opposition
to the legislation. Learn more about the trade’s activism on this issue here.
MBA reports decline in credit availability in December
Mortgage credit availability dropped by 4.6 percent in
December, according to the Mortgage Credit Availability Index (MCAI), a report published
by the Mortgage Bankers Association (MBA) using data provided by ICE Mortgage
Technology. The MCAI fell to 92.1 percent from 96.7 percent the month prior.
This drop indicates a tightening in lending standards against a benchmark of
100 set in March 2012. MBA also reported a 9.9 percent increase in mortgage
applications for the week ending Jan. 5. MBA’s full reports on December credit
availability and mortgage
applications are available online.