Judge Overturns CFPB Rule Capping Credit Card Late Fees - Articles

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Posted by: Azya Thornton on Apr 16, 2025

A federal judge has struck down a U.S. Consumer Financial Protection Bureau (CFPB) rule that capped credit card late fees at $8, after the agency argued the regulation, enacted under the Biden administration, was unlawful. U.S. District Judge Mark Pittman granted a joint request by the CFPB and a coalition of six business and banking groups to vacate the rule, Reuters reports. Pittman agreed the rule violated the Credit Card Accountability Responsibility and Disclosure Act of 2009, which allows issuers to charge fees that are "reasonable and proportional to violations." In a March 2024 lawsuit, CFPB was accused of overstepping its authority.