SDBA eNews

March 14, 2024

ABA Sues CFPB Over New Regulation Restricting Credit Card Late Fees

WASHINGTON — The American Bankers Association today joined the U.S. Chamber of Commerce, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, Consumer Bankers Association, and Texas Association of Business in filing a lawsuit in the U.S. District Court for the Northern District of Texas against the Consumer Financial Protection Bureau (CFPB) that challenges the CFPB’s new rule limiting credit card late fees. The plaintiffs are also seeking a preliminary injunction barring the bureau from implementing the new rule.

“The CFPB’s action to cap credit card late fees below banks’ actual costs exceeds its authority and would result in more late payments, increased debt, reduced credit access and higher APRs for all consumers – including the vast majority of card holders who pay on time each month,” said ABA President and CEO Rob Nichols. “Once again, we have reluctantly been forced to sue a federal regulator because the CFPB has ignored industry and other stakeholder comments demonstrating that this rule exceeds the bureau’s statutory authority and will hurt rather than help consumers. This rule is about politics not policy, and we look forward to the court’s review.”

The litigation challenges the bureau’s March 5 decision to finalize a rule restricting credit card late fees. The rule specifically slashes the safe harbor amount that the Federal Reserve set for those fees — and every previous CFPB has maintained — by 75% and upends more than a decade of regulations.

In the filing, ABA and its co-plaintiffs argue:

“In taking these actions, the CFPB violated the Appropriations Clause, exceeded its statutory authority, and offered deficient analysis and reasoning, all in order to achieve a pre-ordained outcome that will ultimately harm those consumers the CFPB is charged with protecting. To top it off, the CFPB adopted an effective date that violates yet another statute and that exposes issuers to immediate and irreparable harm. This Court should vacate the Final Rule.”

ABA and its co-plaintiffs’ specific arguments for challenging the rule and seeking a preliminary injunction include:

• Violating the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009 by preventing issuers from collecting reasonable and proportional late fees when cardholders don’t pay their bills on time;

• Violating the Administrative Procedure Act (APA) by promulgating a final rule that is arbitrary and capricious, relying on incomplete and nonpublic data to estimate card issuers’ costs;

• Violating the Dodd-Frank Act (DFA) by failing to sufficiently consider the costs to consumers, including the reduced access to credit that will result from the final rule;

• Violating the Truth in Lending Act (TILA) by failing to implement an effective date of Oct. 1 as required with new consumer-credit disclosures; and

• Issuing the rulemaking with funds drawn in violation of the U.S. Constitution’s Appropriations Clause.

Read the full complaint.

GSB and SDBA Offer Scholarship to Graduate School of Banking

Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison (GSB) has developed banking leaders through a rigorous academic program designed especially for experienced bankers. GSB is sponsored and governed by the Central States Conference of Bankers Associations in partnership with the University of Wisconsin-Madison.

Led by GSB’s talented and knowledgeable faculty, the 25-month GSB program is held in two-week sessions over three summers and features a comprehensive core of relevant bank leadership courses across all areas of banking – finance, technology, marketing, management and more. A wide range of electives allows participants to tailor their educational program. The curriculum is enhanced by FiSim, GSB’s robust bank management simulation, and in-depth intersession assignments that allow students to use learned concepts to improve their own institutions, adding relevance and value.

GSB in collaboration with SDBA is a scholarship to applicants for the upcoming school session. The scholarship pays $1,500 per session toward GSB tuition for each of three GSB resident sessions, totaling $4,500. Applicants must be entering their first year at GSB. To apply for this year’s scholarship, visit

To learn more about the Graduate School of Banking, please visit the GSB website: or call 608-243-1945. You may also reach out to the SDBA at 605.224.1653 or [email protected].

Upcoming Events




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click here.

THIS IS HOW WE ROLL: PART DEUX | April 11 | Pierre

Pierre: Ramkota Hotel & Conference Center, 920 W Sioux Ave.

FREE! But registration is required!

The South Dakota Bankers Association is hitting the road again and we’re coming to a town near you for the 2024 edition of ‘This is How We Roll!’ Join SDBA President, Karl Adam, when he presents the following key topics:

  • The who, what, where, when and why of the SDBA, and how you play a key role.
  • 99th Session of the South Dakota Legislature Recap
  • 2024 Election Cycle
  • Current banking-related topics affecting/impacting South Dakota

Plan to join the SDBA for the short program laid out above, then stick around for lunch. These ‘Roll’ events are FREE and open to all bankers, frontline to CEO. 

Learn more and register HERE.

CISA NEWS: DDOS Attacks on Financial Institutions

Financial services accounted for about 35% of all DDoS attacks, surpassing the gaming industry, which previously led all sectors.

Read the full article here.

GSBC Annual School Session | July 14-26

The Graduate School of Banking at Colorado (GSBC) is hosting their Annual School Session July 14-26, 2024, at the University of Colorado Boulder. Through this three-year program, GSBC offers the next generation of bank leaders the opportunity to learn the basics, the skills and the strategies that are essential to thriving in the community banking landscape.

Enrollment is subject to availability; apply by April 1 to secure your spot!

GSBC Application Information

Additional information about GSBC's program can be found on GSBC’s website at

Concerns About Liquidity Regulation

Liquidity regulation has the potential to impose significant costs and limit the lending capacity and business operations of banks, which must be taken into account before imposing any new requirements, Federal Reserve Governor Michelle Bowman said in a recent speech

Read the full article HERE.

  Compliance Alliance logo

Q: Can a lender order an appraisal prior to receiving intent to proceed? Is it a regulatory violation if a lender orders one without having received intent to proceed? When can we first charge for an appraisal?
A: Reg Z does not expressly prohibit the actual ordering of an appraisal prior to receiving intent to proceed. However, without intent to proceed, the Bank runs the risk of not being able to charge the customer for it. Reg Z does not permit the Bank to impose any fee in connection with the transaction before the consumer has provided the intent to proceed. Once the bank has received intent to proceed, it may assess the fee. Some Banks choose to not order any appraisal prior to receiving intent to proceed because if the intent to proceed is never provided, the Bank cannot charge for it. So, this is not necessarily a regulatory error unless you attempt to charge for it without receiving intent to proceed.
Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email [email protected] and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.


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Contact the SDBA at 605.224.1653 or via email