Trump-appointed judge blocks Biden administration credit card late fee cap


A judge in Texas appointed by former President Trump blocked President Biden's administration's plan to reduce late fees on credit cards to $8.

The new rule, which was set to go into effect next week, was halted with U.S. District Judge Mark T. Pittman issuing a preliminary injunction, a decision beneficial to credit card companies and big banks.

The lawsuit against the Consumer Financial Protection Bureau (CFPB) was led by the US Chamber of Commerce. He, along with other banking organizations, alleged that the rule finalized in early March was in violation of multiple federal statutes.

The CFPB's rule, which was planned to be activated Tuesday, was designed to save more than $10 billion in late fees annually by reducing the amount from $32 to $8, according to the CFPB. According to the agency, the average savings would be $220 per year and would impact more than 45 million people who have been impacted by late fees.

“This ruling is a major victory for responsible consumers who pay their credit card bills on time and businesses that want to provide affordable credit,” Maria Monaghan, counsel for the U.S. Chamber of Commerce Litigation Center, said in a statement. ”

“The CFPB's efforts to micromanage would have increased costs for most credit card users and made it harder for businesses to meet the needs of consumers. The U.S. Chamber will continue to hold the CFPB accountable in court,” she said.

Cutting credit card fees is one of the ways the Biden administration is trying to ease financial hardships for Americans as they try to stay out of credit card debt following rising inflation.

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”