05/12/2024

A Federal Judge Temporarily Halts a Plan Designed to Protect Consumers

The Biden administration plan aims to lower credit card late fees to $8

A federal judge in Texas temporarily halted a plan by the Biden administration to lower late fees on credit cards to $8 that was slated to go into effect next week.

The temporary nationwide injunction imposed by Judge Mark Pittman in the Northern District of Texas is a win for the big banks and major credit card companies, which collect billions in revenue each year in late fees and were looking to stop the proposal from going into effect. It is also a win for the U.S. Chamber of Commerce, which led the lawsuit on behalf of the banks.

The new regulations, proposed by Consumer Financial Protection Bureau, would have set a ceiling of $8 for most credit card late fees or require banks to show why they should charge more than $8 for such a fee.

Please select this link to read the complete article from NPR.