Federal Judge Blocks Biden's Plan to Cap Credit Card Late Fees

A Texas court's injunction halts a rule that would have significantly reduced late fees, sparking industry applause and consumer advocacy concern.

Judge Mark Pittman issued a temporary injunction against the Biden administration's rule to cap credit card late fees at $8.
The rule aimed to reduce the average late fee from $32, potentially saving consumers $10 billion annually.
The U.S. Chamber of Commerce led the lawsuit, arguing the rule would hurt businesses and responsible consumers.
Consumer advocates criticize the delay, noting it benefits banks at the expense of consumers facing high fees.
The legal battle continues as the Consumer Financial Protection Bureau defends the regulation aimed at easing financial burdens.