Texas Judge Temporarily Blocks CFPB Rule Capping Late Fees at $8, Affecting $10B Savings

May 10, 2024, 10:15 PM

A federal judge in Texas has temporarily blocked the implementation of a new Consumer Financial Protection Bureau (CFPB) rule that aimed to cap credit card late fees at $8, following a last-minute freeze attempt. This decision, expected today, comes after the banking industry argued that the CFPB exceeded its authority with the regulation. The rule was anticipated to save Americans approximately $10 billion annually in late fees. The legal battle has been marked by significant opposition from business and banking groups, highlighting the contentious nature of the financial regulation.