WASHINGTON–(BUSINESS WIRE)–James Mann and David Gossett, experienced attorneys and partners at the law firm Davis Wright Tremaine, are available to speak with reporters regarding the Consumer Financial Protection Bureau’s new rule concerning credit card late fees. James and David represent many of the top banks, FinTech companies, and financial services companies in the nation, and have helped these clients identify and address their most challenging regulatory and compliance needs.

James has been advising clients on identifying and addressing their most challenging regulatory and compliance issues since 2001, when he left the Federal Reserve, having helped write Regulation P as well as material amendments to other regulations. David is a leading appellate and regulatory litigator who previously served as the initial assistant general counsel for litigation at the CFPB, where he helped stand up the agency and set up and ran the appellate and defensive litigation group.

James and David have prepared the below initial commentary, which can be utilized verbatim in coverage of the rule, and they are also available for interviews.

James Mann, Davis Wright Tremaine:

  • The deep cut in the safe harbor amount may prompt issuers to set their late fees outside the safe harbor. Non-safe harbor late fees may be double the safe harbor amount or more. And they’ll differ from issuer to issuer and over time, complicating consumers’ comparison shopping.
  • The Rule doesn’t only cut the safe harbor amount; it also denies issuers the right to fully recover their costs through late fees outside the safe harbor. (Specifically, the Rule eliminates issuers’ right to recover post-charge-off collection costs. These represent a real and significant cost for issuers.)
  • The Rule encourages issuers to price transparently but also envisions that issuers will raise their APRs. This makes no sense since raising the APR to compensate for late-payment costs along with receivables funding costs actually reduces transparency.

David Gossett, Davis Wright Tremaine:

  • In its rush to reach a pre-ordained result, the Bureau ran roughshod over the data and other materials submitted in response to its Notice of Proposed Rulemaking.
  • I expect that the courts are going to review the CFPB’s analysis here very carefully, and—especially given the fact that the Supreme Court is currently revisiting how much deference agencies get—may well vacate the agency’s new rule.
  • I’ll be shocked if someone does not sue the Bureau over the new rule.

About Davis Wright Tremaine

Davis Wright Tremaine LLP is an AmLaw 100 law firm with more than 600 lawyers representing clients based throughout the United States and around the world. Learn more at www.dwt.com.


Mark Fefer

Davis Wright Tremaine LLP