The Trump administration's CFPB has successfully overturned a Biden-era rule that limited credit card companies' late fees to $8, re-allowing higher charges. U.S. District Judge Mark Pittman supported the reversal, claiming it violated existing legislation. The ruling is seen as part of a broader effort to dismantle consumer protections established during the Biden administration, meeting support from banking groups who deem it a victory for supporters of free market principles. Critics argue the reversal will permit lenders to impose excessive penalties on consumers without evidence that such fees deter late payments.
"We welcome today's court decision vacating the CFPB's credit card late-fee rule. This is a win for consumers and common sense."
"A year ago, the Consumer Financial Protection Bureau (CFPB) put a limit on how much credit card companies could charge consumers for late payments. On Tuesday, the Trump administration quashed that limit."
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