US EditionHow to avoid credit card late fees after a court threw out a proposed cap
- Earlier this month, a Texas judge invalidated a federal regulation that sought to limit credit card late fees to a maximum of $8.
- The rule, finalized last year by the Consumer Finance Protection Bureau as part of the Biden administration's effort against junk fees, faced opposition from industry groups who reached an agreement with the CFPB under President Trump to discard it.
- This cap aimed to reduce fees averaging $32, which have steadily increased since 2010, affecting about 52 million people who paid late fees last year, especially lower-income communities and those living paycheck to paycheck.
- The CFPB estimated that families would have saved more than $10 billion annually if fees had been capped, but industry groups argued the rule would limit fee deterrence, increase interest rates, and reduce credit access for cardholders.
- Advocates called the ruling a devastating blow, warning it prioritizes corporations over consumers, while industry groups welcomed the elimination of the cap and the courts paused the rule before it could take effect.
43 Articles
43 Articles
How to avoid credit card late fees now that they’re back
A Texas judge earlier this month threw out a federal rule that would have capped credit card late fees at $8. The Consumer Finance Protection Bureau finalized the rule last year as part of the Biden administration’s efforts to do away with what it called junk fees. It was paused by the courts before it could take effect. At the time, the CFPB estimated that American families would have saved more than $10 billion in late fees annually had the fe…
Associated Press News
How to avoid credit card late fees after a court threw out a proposed cap
A Texas judge has thrown out a federal rule that would have capped credit card late fees at $8. The Consumer Finance Protection Bureau finalized the rule last year as part of the Biden administration’s efforts to do away with what it called junk fees.
Avoid Credit Card Late Fees: Post-Court Ruling – Archyde
Archyde Credit Card Late Fee Cap Struck Down: What It Means for Consumers Table of Contents 1. Credit Card Late Fee Cap Struck Down: What It Means for Consumers 2. The Battle Over Late Fees 3. Understanding credit Card Late fees 4. How to Avoid credit Card Late Fees 5. The History of Credit Card Regulations […] You can read the full story here: Avoid Credit Card Late Fees: Post-Court Ruling.
Federal judge removes cap on credit card late fees
A federal court judge in Texas scrapped a Consumer Financial Protection Bureau (CFPB) rule that would have limited “excessive” credit card late fees to $8. Judge Mark Pittman, who had already blocked the CFPB from implementing the fee cap, decided the rule illegally prohibited credit card…
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