Story perspectives

Judge Strikes Down CFPB's $8 Credit Card Late Fee Cap

4/15/2025

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Summary

Story summary

A federal judge overturned the CFPB's $8 cap on credit card late fees, ruling it illegal under the CARD Act.
The CFPB and banking groups sought the rule's dismissal, potentially saving the industry $10 billion yearly.
The judge stated the cap hindered issuers from imposing "reasonable and proportional" fees.
This ruling concludes a year of litigation against the CFPB's policy initiated by industry groups.
The case was heard in the U.S. District Court for the Northern District of Texas.

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Story summary

A federal judge overturned the CFPB's $8 cap on credit card late fees, ruling it illegal under the CARD Act.
The CFPB and banking groups sought the rule's dismissal, potentially saving the industry $10 billion yearly.
The judge stated the cap hindered issuers from imposing "reasonable and proportional" fees.
This ruling concludes a year of litigation against the CFPB's policy initiated by industry groups.
The case was heard in the U.S. District Court for the Northern District of Texas.