Pause on Credit Card Late Fees Rule Continues
Source: U.S. Chamber of Commerce
In a win against government micromanagement of business, a federal court in Texas last week refused to lift a preliminary injunction on the Consumer Financial Protection Bureau’s (CFPB) credit card late fees rule and held that the Bureau likely exceeded its statutory authority in issuing the rule.
The U.S. Chamber sued the CFPB in March to block the rule, and the court halted it in May before it could take effect.
Why it matters: The rule would have punished Americans who pay their credit card bills on time by forcing them to pay for those who don’t. It also would have limited access to affordable credit for many consumers.
Looking ahead: With a new Administration coming in next year, the CFPB could choose to rescind the rule.
Dig deeper:
How the U.S. Chamber Halted the CFPB's Credit Card Late Fees Rule