#late fees – Page 2 – Federal Financial Analytics

8 02, 2023

FedFin on: Credit-Card Late Fee Regulation

Arezou Rafikian2023-02-09T09:43:39-05:00February 8th, 2023|The Vault|

Following on a controversial advance notice of proposed rulemaking, the CFPB has now released an NPR setting specific standards for credit-card late fees that also eliminates the inflation adjustments established by the Federal Reserve when implementing the 2009 credit-card law. The NPR also seeks comment on still more stringent late-fee restraints and limits on some or all of the other penalty fees now charged by some credit-card issuers. When issuing the ANPR, the Bureau also noted that it plans to advance other initiatives under its “junk-fee” standards, likely starting with those pursuant to ….

The full report is available to retainer clients. To find out how you can sign up for the service, click here and here.…

8 02, 2023

CREDITCARD36

Eliza Allen2023-02-08T13:00:21-05:00February 8th, 2023|1- Financial Services Management|

Credit-Card Late Fee Regulation

Following on a controversial advance notice of proposed rulemaking, the CFPB has now released an NPR setting specific standards for credit-card late fees that also eliminates the inflation adjustments established by the Federal Reserve when implementing the 2009 credit-card law. The NPR also seeks comment on still more stringent late-fee restraints and limits on some or all of the other penalty fees now charged by some credit-card issuers. When issuing the ANPR, the Bureau also noted that it plans to advance other initiatives under its “junk-fee” standards, likely starting with those pursuant to the Electronic Funds Transfer Act affecting a wide range of payment and transaction-account products. Should it then follow the model proposed here for credit cards, significant alterations in current business practice could occur with uncertain consumer benefits despite nominal upfront savings.

CREDITCARD36.pdf…

1 02, 2023

DAILY020123

Eliza Allen2023-02-01T16:53:57-05:00February 1st, 2023|2- Daily Briefing|

CFPB Set To Quash Credit-Card Late Fees

Taking action as anticipated following its June ANPR (see FSM Report CREDITCARD35), the CFPB today released an NPR that would curtail credit card late fees the Bureau calls “excessive,” moving ahead also with one aspect of the White House competition agenda.

Comment Deadline Set For CFPB Contract Registry Proposal

The Federal Register today includes the CFPB’s form-contract registry proposal. As noted (see FSM Report CONSUMER48), the Bureau’s NPR would establish a public registry requiring nonbanks to post contract provisions which the agency believes threaten consumer legal or free-speech rights.

Brown, Democrats Press Thompson On Enterprise Loan Sale Programs

Ahead of a housing hearing as soon as next week, Senate Banking Chairman Brown (D-OH) and four other Democrats today sent a letter to FHFA Director Thompson requesting a review of Fannie and Freddie’s nonperforming and reperforming loan-sales programs.

McHenry Confirms Privacy, Crypto Priorities; Rewrites HFSC Rules

At an HFSC organizational meeting, Chairman McHenry (R-NC) today emphasized that he wants to work with Democrats, but much of what he said is unlikely to facilitate this. For example, he noted with regard to crypto legislation that he wants to end the SEC’s enforcement-focused policy; as previously noted, any crypto legislation curtailing the SEC will run afoul of Democratic views in both the House and Senate.

Daily020123.pdf…

29 03, 2022

DAILY032922

Eliza Allen2023-03-27T15:03:11-04:00March 29th, 2022|2- Daily Briefing|

CFPB Targets Credit-Card Fees as Undue, Discriminatory

Continuing its campaign against “junk fees” (see FSM Report CONSUMER38), the CFPB today issued a scathing report expanding the agency’s previous critique of credit-card fees. In a new report, the agency finds that the top twenty credit-card issuers charge higher late fees than 87% of other banks or credit unions, taking full advantage of what the report describes as “immunity” under the 2009 CARD Act (see Client Report CREDITCARD34). The report has no direct policy recommendations, but it targets fees levied at subprime accounts which, it says, are disproportionately costly to LMI communities and those of color.

Daily032922.pdf…

1 02, 2022

GSE-020122

Eliza Allen2023-04-05T14:20:22-04:00February 1st, 2022|4- GSE Activity Report|

CFPB Goes for the Jugular

Nothing could do as much damage to a business based on fee revenue as a determined CFPB inquiry into fee revenue. Last Thursday, the Bureau’s new director, Rohit Chopra, launched just such an inquiry. Here, we assess its important to mortgage origination and servicing along with what’s next.

GSE-020122.pdf…

16 12, 2021

Daily121621

Arezou Rafikian2023-05-22T16:01:11-04:00December 16th, 2021|2- Daily Briefing|

FHFA Constructs a GSE Stress-Capital buffer
Building on its pending rewrite of GSE-capital rules, FHFA today proposed capital-planning requirements for Fannie Mae and Freddie Mac akin in many ways to those governing large banks.

Campaign Advances to Oust McWilliams
Ramping up the FDIC battle, Public Citizen today called on President Biden to oust FDIC Chair McWilliams. Confirming those who have suggested that the fracas is about more than bank M&A, the letter is signed not only by many consumer-advocacy groups, but also by climate-change interest organizations.

Democrats Demand BNPL Review, CFPB Obliges
Acting quickly on Senate Democrats’ request, the CFPB today launched an inquiry into buy now, pay later (BNPL) credit, requesting information from five BNPL credit providers on BNPL risks and benefits.

FSB Says Global NBFIs are Stable, Shrinking vs. Banks
The FSB today released its annual NBFI monitoring report, concluding somewhat puzzlingly that balance-sheet NBFI vulnerability measures appeared broadly stable comparing 2020 and 2019 despite the market volatility at the pandemic’s outset and massive government intervention.

OCC Begins Climate-Risk Regulatory Build-Out
As promised, the OCC today issued draft climate risk-management principles that, when finalized, would guide future agency action starting next year.

Daily121621.pdf…