Judge blocks Biden administration rule capping credit card late fees at $8 | CNN Business
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A federal judge in Fort Worth, Texas, on Friday blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8.

A federal judge in Fort Worth, Texas, on Friday blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8.

US District Judge Mark T. Pittman, an appointee of former President Donald Trump, granted a preliminary injunction to several business and banking organizations that allege the new rule violates several federal statutes.

These organizations, led by the right-leaning US Chamber of Commerce, sued the Consumer Financial Protection Bureau after the rule was finalized in March. The rule, which was set to go into effect Tuesday, would save consumers about $10 billion per year by cutting fees from an average of $32, the CFPB estimated.

    • givesomefucks@lemmy.worldEnglish
      24·
      6 months ago

      Yeah, better than nothing, but wouldn’t have been enough.

      Another example why it never pays off to go after moderate solutions. Republicans will fight everything equally as hard, so why not actually try for a lot?

      At least then when things actually make it, they cause a difference

    • Brosplosion@lemm.ee
      3·
      6 months ago

      Without late fees there is no incentive to pay on time. I don’t understand the rationale to remove them entirely, though regulating maximums makes sense.