The American Consumer Institute (ACI) announced their support for U.S. Rep. Andy Barr’s (R-Ky.) proposed Congressional Review Act (CRA) resolution to overturn the Consumer Financial Protection Bureau’s (CFPB) limit on late fees on credit cards. 

The CFPB finalized a rule in March that limited late fees on credit card payments and reduced the typical late payment charge from $32 to $8. 

Rep. Barr filed his CRA in opposition, saying the new rule would “harm the very individuals it is tasked to protect by increasing the cost of credit, decreasing the availability of financial products and services, and penalizing consumers who pay their credit card payments on time.”

“The CFPB’s rulemaking on credit card late fees has flown in the face of basic economics, inadvertently harming consumers,” ACI said in their release. “History has shown us that price controls only lead to shortages, and the CFPB’s $8 cap on late fees is no different. These late fees exist for a reason, and capping them will only force banks to limit credit to consumers who need it or make up the money in other ways, like charging higher rates.”

The House Financial Services Committee is set to review the CRA on April 24.