https://www.cbsnews.com/news/credit-card-late-fees-cfpb/A federal judge in Texas has blocked a new government rule that would slash credit card late-payment charges, a centerpiece of the Biden administration's efforts to clamp down on "junk" fees. Judge Mark Pittman of the U.S. District Court for the Northern District of Texas on Friday granted an injunction sought by the banking industry and other business interests to freeze the restrictions, which were scheduled to take effect on May 14. In his ruling, Pittman cited a 2022 decision by the U.S. Court of Appeals for the Fifth Circuit that found that funding for the Consumer Financial Protection Bureau (CFPB), the federal agency set to enforce the credit card rule, is unconstitutional. The regulations, adopted by the CFPB in March, seek to cap late fees for credit card payments at $8, compared with current late fees of $30 or more. Although a bane for consumers, the fees generate about $9 billion a year for card issuers, according to the agency.After the CFPB on March 5 announced the ban on what it called "excessive" credit card late fees, the American Bankers Association (ABA) and U.S. Chamber of Commerce filed a legal challenge. The ABA, an industry trade group, applauded Pittman's decision."This injunction will spare banks from having to immediately comply with a rule that clearly exceeds the CFPB's statutory authority and will lead to more late payments, lower credit scores, increased debt, reduced credit access and higher APRs for all consumers — including the vast majority of card holders who pay on time each month," ABA CEO Rob Nichols said in a statement.
Consumer groups blasted the decision, saying it will hurt credit card users across the U.S."In their latest in a stack of lawsuits designed to pad record corporate profits at the expense of everyone else, the U.S. Chamber got its way for now, ensuring families get price-gouged a little longer with credit card late fees as high as $41," Liz Zelnick of Accountable.US, a nonpartisan advocacy group, said in a statement. "The U.S. Chamber and the big banks they represent have corrupted our judicial system by venue shopping in courtrooms of least resistance, going out of their way to avoid having their lawsuit heard by a fair and neutral federal judge."According to consumer advocates that support the CFPB's late-fee rule, credit card issuers hit customers with $14 billion in late-payment charges in 2019, accounting for well over half their fee revenue that year. Financial industry critics say such late fees target low- and moderate-income consumers, in particular people of color.Despite Pittman's stay on Friday, analysts said the legal fight over late fees is likely to continue, with the case possibly heading to the Supreme Court. "We believe this opens the door for the CFPB to seek to lift the preliminary injunction if the Supreme Court rules in the coming weeks that Congress properly funded the agency," Jaret Seiberg of TD Cowen Washington Research Group said in a report following the decision. "It is why we believe this is not the end of the fighting over whether the fee cut will take effect before full consideration of the merits of the lawsuit."
Republicans: OMG CREDIT CARD DEBT IS AT AN ALL TIME HIGH, HOW COULD BRANDON LET THIS HAPPENAlso Republicans: NOOOO BRANDON CAN'T TRY TO DO SOMETHING ABOUT CREDIT CARD DEBT THAT'S WOKE COMMUNIST SOCIALISM!!!!1!!
>>1294622Lord, you're such a fucking child.
>>1294622Dems cannot be allowed to look good. Republicans are correct to burn the country to the ground instead of helping Americans.
>>1294639Is that why you're obsessed with me?
This makes me want to buy another $49.99 red hat with a $41 credit card fee on top.
>>1294619Isn't this one of those judges the far right shop for to push their agenda? They should just ignore these rulings.
>>1294659Yes he was on of the Federalist Society list given to Trump at the beginning of his term if that's what you mean
>>1294659>>1294682It's all the Spirit of Aloha you retarded samefaggot.Gonna need you to quit with the coping.
>>1294641You turn me on troon when I think of you in a dress.
>>1294685>>1294697>>>/pol/
>>1294642>another
>>1294730Do you need another ban for disruptive posting?
>>1294619>lead to more late payments, lower credit scores, increased debt, reduced credit access and higher APRs for all consumersRead as:>if you hurt our bottom line we will fuck over all of you in revenge
>>1294619>"This injunction will spare banks from having to immediately comply with a rule that clearly exceeds the CFPB's statutory authority and will lead to more late payments, lower credit scores, increased debt, reduced credit access and higher APRs for all consumersSounds like they need to do something about those APRs too. Despite the red-blue child war the shitlord trollfag tried to start, it's important this is explored to it's legal end so it simply isn't overturned at some point.
>>1294750I've never had a ban for disruptive posting. You can take your meds now.
>>1294753Well, the ban reason was probably trolling or something.I've seen your idiocy cleared out of threads before, so I know there's been a couple bans over it.Why not just kill yourself?
>>1294757You have a mental disease and your posts reflect that.
>>1294753>I've never had a ban for disruptive posting.Not true. Remember when they mass deleted your Ivan posts?
>>1294774Not to mention the waves of >>1294774see >>1294760And the meant for >>1294753posts.That faggot is the shittest poster on the Internet.
>>1294774>>1294781https://www.youtube.com/watch?v=ygr5AHufBN4
Amazing that there are people here trying to defend this.
>>1294682No I mean when the Republicans file for a case in the jurisdiction of a specific republican judge who they know will rule their way, as in literally shopping for a judge.
>>1294880>CFPB's statutory authorityYou are OK with agencies potentially exceeding their authority?Sucks to be you.
>>1294898Republicans have had a hateboner for the CFPB since Obama created it and Elizabeth Warren ran it.
>>1294899To be fair, it was created by Obama and run by Elizabeth Warren.
>>1294903And that's a good thing.
