Federal Judge Halts Plan to Lower Credit Card Late Fees
Saturday, 11 May 2024, 19:27
Trump-Appointed Judge's Ruling on Late Fee Cap
A former President Trump-appointed judge in Texas halted President Biden’s administration’s plan to decrease late fees on credit cards to $8.
Legal Battle and Preliminary Injunction
The new rule, which was set to take place next week, was stopped with US District Judge Mark T. Pittman issuing a preliminary injunction, a decision beneficial to credit card companies and big banks.
Impact on Consumers and Businesses
- CFPB’s rule aimed to save over $10 billion annually by reducing late fees from $32 to $8.
- Approximately 45 million consumers would have benefited from an average annual saving of $220.
- Opponents argued that the rule could lead to higher costs for credit card users and affect businesses' ability to cater to consumer needs.
This ruling emphasizes the ongoing debate over financial regulations and their implications for various stakeholders.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.