A federal judge in Texas has temporarily halted a plan by the Biden administration to lower late fees on credit cards to $8, which was set to go into effect next week. The temporary nationwide injunction, imposed by Judge Mark Pittman in the Northern District of Texas, is a significant development in the ongoing debate over credit card late fees.
The new regulations proposed by the Consumer Financial Protection Bureau aimed to cap most credit card late fees at $8 or require banks to justify charging more than that amount. This rule would have brought down the average credit card late fee from $32, potentially saving consumers money.
