Metro Lex News

Washington, DC – Yesterday, the House Financial Services Committee advanced Congressman Barr’s Congressional Review Act (CRA) to nullify the Consumer Financial Protection Bureau’s credit card late fee rule. The rule, which according to Congressman Barr, would harm hardworking Americans’ ability to access financial services and products, is facing strong opposition.

"This CRA sends a strong rebuke to the CFPB's overreach in its latest ill-conceived rule on credit card late fees,” said Congressman Barr. He expressed concerns that the CFPB's rule would have negative consequences for consumers, stating, “In an effort to push a political agenda ahead of the presidential election, the CFPB will harm the very individuals it is tasked to protect by increasing the cost of credit, decreasing the availability of financial products and services, and penalizing consumers who pay their credit card payments on time."

Congressman Barr highlighted the potential long-term effects of the rule, mentioning how it could impact Americans’ economic mobility and prosperity. He emphasized that the rule could incentivize individuals to take on more debt, leading to lower credit scores and hindering their ability to achieve goals such as homeownership or accessing credit for various needs.

"The Biden administration has shown time and again that they believe debts do not need to be repaid. This CRA will nullify a rule that will result in nothing but bad outcomes for consumers,” added Congressman Barr, expressing his intention to collaborate with Senator Scott to ensure the bill progresses through both chambers and reaches President Biden’s desk.

The debate over the credit card late fee rule continues as stakeholders navigate conflicting perspectives on its potential impact on consumers and the financial services sector.