Court Halts Implementation of Credit Card Late Fee Cap Rule: What It Means for Consumers

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A federal court ruling on Friday delivered a significant setback to the implementation of a Consumer Financial Protection Bureau (CFPB) rule aimed at curbing credit card late fees. The regulation, announced in March, was set to take effect this week but has now been put on hold following a legal challenge from the U.S. banking industry.

Judge Mark Pittman of the Northern District of Texas sided with plaintiffs, including the U.S. Chamber of Commerce, granting their request for a preliminary injunction to freeze the rule. This decision suspends the implementation of measures that would have limited late payment fees charged by credit card companies, potentially saving American families billions of dollars annually.

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