From CNBC: 2024-05-10 19:35:49

The U.S. banking industry successfully halted a Consumer Financial Protection Bureau rule that would’ve limited credit card late fees, saving the industry a key revenue stream. A federal court granted an injunction delaying the rule, estimated to save families $10 billion a year. The regulation’s fate is now uncertain.

The CFPB alleges credit card issuers profit off excessive late fees. Industry trade groups argue the fee caps redistribute costs and penalize those who pay on time. Lawsuits aim to block the regulation to protect billions in profits. The Consumer Bankers Association pushes to scrap the rule entirely.

Read more: The rule capping credit card late fees at $8 is on hold — here’s what it means for you