U.S. Sen. Tim Scott (R-S.C.) introduced a Congressional Review Act (CRA) resolution on April 8 to overturn the Consumer Financial Protection Bureau’s (CFPB) rule limiting credit card “late fees.”
“While Americans struggle to keep pace with record inflation under President Biden, now is the wrong time to play political games that limit access to credit,” said Scott in a statement. “But that’s exactly what the CFPB’s rule to limit credit card late penalties will do – it will decrease the availability of credit card products and important financial services, particularly for Americans who need them most.”
“Lawful and contractually agreed upon payment incentives promote financial discipline and responsibility, and this rule shows that the CFPB is more focused on scoring political talking points than policies that protect consumers,” said Scott.
Scott said the CFPB rule would limit access to credit and raise rates for borrowers who carry a balance but pay on time.
The resolution says that, “Congress disapproves the rule submitted by the Bureau of Consumer Financial Protection relating to Credit Card Penalty Fees (Regulation Z) (89 Fed. Reg. 19128 (March 15, 2024)), and such rule shall have no force or effect.
Among other provisions the CFPB’s credit card “late fee” rule would reduce the credit card late fee “safe harbor” under the CARD Act from the current levels of $30 for the first violation and $41 for subsequent violations to $8, without inflation adjustments.
Tim Scott was born and raised in North Charleston, South Carolina. He graduated from R.B. Stall High School and Charleston Southern University (B.A.). Before running for office, he worked in insurance and owned his own Allstate Insurance agency.
Scott was elected to the Charleston County City council in 1995 and served until 2008 when he was elected to the U.S. House of Representatives serving the 1st Congressional District until 2013. He was appointed to serve as U.S. Senator for South Carolina by Governor Nikki Haley and was reelected to the position in 2016.