A U.S. consumer watchdog's proposal to slash late fees on credit cards is facing a rough road ahead as lenders gear up for what could turn out to be a fierce battle with the agency, industry experts and analysts said, Reuters reported. Last month, the Consumer Financial Protection Bureau said it was looking to curb such "excessive" fees, which cost American consumers about $12 billion each year, according to the agency's estimates. Credit card issuers that have a bigger exposure to subprime customers or private label cards, which can only be used with a specific brand, could be the worst hit, with revenues expected to decline by mid-to-high single-digit percentage points, ratings agency Fitch estimates. Fitch identified Discover Financial Services, Capital One Financial, Synchrony Financial and Bread Financial Holdings among those at risk. The American Bankers Association (ABA), which represents Wall Street banks as well as regional lenders, has already warned that the CFPB's proposal "flagrantly violates federal law", according to a statement shared with Reuters.
