The CFPB on March 22 issued a final rule amending Regulation Z (Truth in Lending) to remove a cap on the total amount of fees that a credit card issuer may require a consumer to pay with respect to a credit card account prior to the opening of the account. The final rule was issued in response to a federal court ruling last year that had granted a preliminary injunction to block a part of the fee cap rule from taking effect. The final rule became effective on March 28.
Nutter Notes: Regulation Z generally limits the total amount of fees that a credit card issuer may require a consumer to pay with respect to an account to 25% percent of the credit limit in effect when the account is opened. Prior to the amendment, Regulation Z stated that the limitation applies both prior to account opening and during the first year after account opening. The limitation now applies only during the first year after account opening.