Legal
Bankers Notch Win in Fight to Keep Billions in Credit-Card Fees
- Opponents to CFPB rules applaud move by a Texas judge
- Injunction froze an $8 late-fee cap set to take hold this week
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Banks are celebrating an early legal win in their fight to kill new US rules that threaten billions of dollars in revenue from credit-card late fees.
A federal judge’s decision last week to freeze caps on the charges mandated by the Consumer Financial Protection Bureau gave a last-minute reprieve to lenders before they were scheduled to take effect this week. Opponents of the regulations are also touting the hold, which is in place as the US Supreme Court considers a broad challenge to the CFPB’s funding, as a sign that the regulation may be completely overturned in court.