WASHINGTON, DC (April 15, 2025) |
The Defense Credit Union Council (DCUC) supports today’s settlement agreement between the Consumer Financial Protection Bureau (CFPB) and the American Bankers Association and other plaintiffs regarding the CFPB’s credit card late fee rule.
"This settlement represents a critical step forward in reforming regulatory overreach that would have significantly hindered credit unions’ ability to serve their members effectively," says Anthony Hernandez, DCUC President/CEO. "The CFPB’s final rule not only exceeded its statutory authority under the Credit CARD Act but also posed a direct threat to the financial well being of millions of Americans—including those in vulnerable and underserved communities."
Prior to the suit, DCUC had voiced its concerns on the CFPB's rule and the obstacles it would introduce to defense credit unions dedicated to serving the financial needs of their members.
In previous letters to leaders at the Senate Banking and House Financial Services Committees, DCUC Chief Advocacy Officer Jason Stverak explained how access to reliable, innovative financial tools is critical for America's communities, especially for military members. "Overly burdensome regulations like the CFPB’s late fee rule not only threaten those tools but also risk worsening financial discipline, increasing costs, and reducing access to credit," says Stverak. "While we support reasonable limits, the market—not one-size-fits-all mandates—remains the best regulator for our military families’ financial well-being.”
"These outcomes would have disproportionately harmed those with limited financial means, including military families, veterans, and individuals in rural or low-income areas—many of whom rely on credit unions for fair, transparent, and mission-driven financial services," adds Hernandez. "We believe this resolution is a positive step toward restoring common-sense regulation that enables financial institutions, including credit unions, to continue providing responsible credit access, financial education, and long-term security to the communities they serve."
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.