A federal judge in Texas has struck down a Biden-era Consumer Financial Protection Bureau rule that would have capped credit card late fees at $8, according to Benzinga. The Biden-era rule was expected to save consumers $220 per year. Still, U.S. District Judge Mark Pittman sided with business groups who argued the cap violated the Credit Card Accountability and Disclosure Act’s requirement for fees to be “reasonable and proportional.” The American Bankers Association, U.S. Chamber of Commerce, and Texas trade groups led the lawsuit. The ruling is a win for the financial industry and a blow to the Biden administration’s broader crackdown on predatory fees.
