A Texas judge has dismissed the Consumer Financial Protection Bureau’s credit card late fee rule in a major victory for banks, business trade groups, the U.S. Chamber of Commerce and the Trump administration.
On Tuesday, U.S. District Court Judge Mark. T. Pittman tossed the CFPB’s credit card late fee rule saying the bureau’s failure to allow card issuers to charge fees for late payments violates the CARD Act and the Administrative Procedure Act. The rule set credit card late fees at $8, up from $32, without taking into account that credit card issuers are allowed to charge penalty fees, Pittman said, in violation of the Credit Card Accountability and Disclosure Act.
