America’s Credit Unions Issues Statement About the Credit Card Fairness Act

Scott Simpson

“Credit unions are steadfastly committed to supporting affordability and helping American families through tough times. They structure their programs and costs to meet that mission and have for nearly a century. Most credit unions already charge significantly lower late fees than large banks, but the policy itself was deeply flawed, and it remains flawed today. 

Hard price caps are a blunt instrument, and they rarely work the way people hope.  A rigid $8 cap does not come close to covering the real costs of servicing accounts and managing risk. When those costs are ignored, they do not disappear. They get shifted onto consumers who pay their bills on time through higher fees, fewer card options, or reduced benefits, while access to credit tightens for those who need it most. We raised these concerns when the CFPB proposed its rule, and the same problems exist here. 

If we want to help consumers long-term, we should focus on policies that expand access to fair, affordable credit, not ones that risk shutting people out when they need it most. The courts recognized this fact when it vacated CFPB’s misguided rule on credit card late fees. Unfortunately, the Credit Card Fairness Act is attempting to repeat that mistake.”
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​- Scott Simpson, President/CEO, America’s Credit Unions 

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