CCAGW Joins Coalition Opposing Price Cap on Credit Card Late Fees | Council For Citizens Against Government Waste

CCAGW Joins Coalition Opposing Price Cap on Credit Card Late Fees

Letters to Officials

President Joseph R. Biden
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Director Rohit Chopra
Consumer Financial Protection Bureau
1700 G St NW
Washington, DC 20552

October 19, 2023

Dear President Biden and Director Chopra,

We, the undersigned organizations dedicated to promoting pro-consumer, pro-growth policies, are writing to express our strong opposition to your proposed rule change to impose a stricter price cap on credit card late fees.

At the White House this month, President Biden touted the rule, alleging it would give the most vulnerable Americans among us a much-needed break. This isn’t true. A stricter price cap will harm not only small businesses and the economy at large but also the low-income workers that the administration is intending to help.

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. 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.

What’s more, the regulation may cause smaller lending institutions — like credit unions that heavily rely on fees as a source of revenue — to struggle to sustain their operations, which will reduce the availability of credit and diversity of financial products on the market.

In a letter to the CFPB, the Small Business Administration’s Office of Advocacy noted that you failed to properly consider the impact this rule will have on small entities. The Office noted that “courts have held that agencies must conduct an adequate analysis before certifying a rulemaking,” yet “the CFPB’s certification lacks specific data on the impact of reduced fees, reductions in card issuances, costs of changes to risk analysis and other internal processes and impacts on the cost of credit.” The Office also noted that you admitted to currently lacking data on small depository institutions, which makes the hasty release of this new price cap even more concerning.

For all these reasons and more, we urge you to withdraw the rule.


Tom Schatz, Council for Citizens Against Government Waste 

Ed Martin, Phyllis Schlafly Eagles 

Grover Norquist, Americans for Tax Reform

John Berlau, Competitive Enterprise Institute 

Cameron Sholty, Heartland Impact 

Brent M. Gardner, Americans for Prosperity 

Karen Kerrigan, Small Business and Entrepreneurship Council 

Gerard Scimeca, Consumer Action for a Strong Economy 

Brian Garst, Center for Freedom & Prosperity 

Isaac Schick, American Consumer Institute 

Stephen Kent, Consumer Choice Center 

Patrick Brennen, Southwest Public Policy Institute 

Hadley Heath Manning, Independent Women's Forum 

Terry Schilling, American Principles Project 

George Landrith, Frontiers of Freedom 

Saul Anuzis, 60 Plus Association 

David Williams, Taxpayers Protection Alliance 

Paul Gessing, Rio Grande Foundation 

Jeff Mazzella, Center for Individual Freedom 

Ryan Ellis, Center for a Free Economy 

Phil Kerpen, American Commitment 

Seton Motley, Less Government 

Dan Perrin, HSA Coalition 

Chuck Muth, Citizens Outreach 

Wendy Darmon, Palmetto Promise Institute 

Judson Phillips, Tea Party Nation 

Richard Manning, Americans for Limited Government 

Carol Platt Liebau, Yankee Institute 

Marcos Lopez, Nevada Policy Institute 

Mike Stenhouse, Rhode Island Center for Freedom and Prosperity 

Sal Nuzzo, James Madison Institute 

CC:  The Honorable Sherrod Brown, Chair of the US Senate Committee on Banking, Housing and Urban Affairs 

         The Honorable Tim Scott, Ranking Member of the US Senate Committee on Banking, Housing and Urban Affairs 

         The Honorable Patrick McHenry, Chair of the US House Committee on Financial Services 

         The Honorable Maxine Waters, Ranking Member of the US House Committee on Financial Services 

         The Honorable Roger Williams, Chair of the US House Small Business Committee 

         The Honorable Nydia Velazquez, Ranking Member of the US House Small Business Committee 


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Letter Type: 
Coalition Letters