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On January 23, the U.S. Senate Committee on Banking, Housing, and Urban Affairs announced that Senator Elizabeth Warren sent a letter to CFPB Acting Director Russell Vought, urging the Bureau to take more aggressive action to address rising credit card costs. The letter argues that, while Congress considers legislation to address credit card pricing, the CFPB already has tools available under existing consumer protection statutes that could be used to curb what the Senator characterizes as excessive interest rates and fees.
The letter cites recent CFPB market data showing that average credit card annual percentage rates reached their highest level since 2015 in late 2025, alongside a significant increase in total interest paid by consumers and a growing share of cardholders making only minimum payments. Senator Warren asserts that these trends reflect pricing that exceeds what is necessary to cover credit risk and contends that the CFPB's current supervisory, enforcement, and rulemaking posture has reduced scrutiny of credit card practices during a period of heightened consumer financial stress.
The letter outlines five areas where the CFPB could act without new legislation:
- Credit card late fees. Senator Warren argues that existing safe harbors allow late fees to exceed issuers' actual costs and urges the Bureau to reinstate its prior rule capping late fees at $8 or, at a minimum, require issuers to substantiate fee amounts.
- Deferred interest promotions. The letter contends that certain deferred interest offers may mislead consumers by imposing retroactive interest charges if balances are not paid in full and calls for rulemaking to address allegedly unfair or deceptive practices.
- Interest rate re-evaluations. The letter asserts that some issuers have failed to conduct required periodic reviews to determine whether penalty interest rates should be reduced and urges the CFPB to resume examinations under the Truth in Lending Act and the Credit Card Accountability Responsibility and Disclosure Act.
- Credit card rewards practices. Senator Warren points to prior CFPB statements addressing alleged rewards devaluation and disappearance of points, urging renewed supervision, enforcement, or rulemaking in this area.
- Consumer complaint oversight. The letter highlights a rising volume of credit card complaints and calls on the CFPB to fully staff and resume processing, supervision, and enforcement activities related to those complaints.
Putting It Into Practice: Senator Warren's letter underscores the continued scrutiny of credit card pricing, fees, and rewards practices (previously discussed here). Institutions should also monitor whether this pressure translates into renewed CFPB supervision, rulemaking, or enforcement activity in 2026 and update compliance and risk management strategies as appropriate.
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