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CFPB Amends Reg Z Credit Card Fee Limitation

The Consumer Financial Protection Bureau (CFPB) has issued a final rule to amend Regulation Z, Truth in Lending Act (TILA), and Reg Z’s official commentary regarding limitations on fees that credit card issuers may charge.  Reg Z generally limits the total amount of fees that an issuer may charge on a consumer’s credit card account to 25% of the credit limit in effect when the account is opened.

The final rule amends Reg Z so that the limitation applies only during the first year after account opening.  Prior to the final rule, Reg Z stated that this limitation applies prior to account opening and during the first year after account opening. 

The Missouri Credit Union Association (MCUA) sent in a comment letter in advance of the final rule. The final rule is positive and will benefit some credit card issuers.  However, as MCUA noted in its comment letter, the changes will not have a major impact directly on credit union issuers, based on the restricted fees they typically charge on members’ credit card accounts. 

The final rule took effect March 28, 2013.

For additional information, click here to see the Credit Union National Association's (CUNA) Final Rule Analysis (CUNA log-In and password required).


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