A federal judge on Tuesday threw out a U.S. Consumer Financial Protection Bureau (CFPB) rule capping credit card late fees at $8, after the agency agreed with opponents that the rule adopted during President Joe Biden’s administration was illegal, according to Reuters.
U.S. District Judge Mark Pittman in Fort Worth, Texas granted a joint request by the CFPB and a coalition of six business and banking groups including the U.S. Chamber of Commerce and American Bankers Association to scrap the rule.
Pittman, an appointee of President Donald Trump, agreed with both sides that the rule violated the Credit Card Accountability and Disclosure Act of 2009 because it prohibited card issuers from charging fees „reasonable and proportional to violations.”
The rule, capped late fees for issuers with more than 1 million open accounts unless they could prove higher fees were necessary to cover their costs. It had been part of Biden’s crackdown on „junk fees,” and was intended to reduce the typical late fee from about $32.
The Trump administration is reversing many Biden-era rules and policies that it considers unfriendly to business. Moreover, Trump has sought to dismantle the CFPB but has been partially blocked in court. A federal appeals court on Friday said the administration could lay off workers at the agency but not eliminate it entirely.
The CFPB, a consumer finance watchdog established in the aftermath of the global financial crisis, has long been targeted by Republicans who say it is unaccountable and exceeds its legal authority with enforcement cases against financial companies.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
