Judge Blocks CFPB's Attempt to Reinstate Credit Card Late Fee Cap

A Texas judge has denied the Consumer Financial Protection Bureau's (CFPB) request to reinstate a rule capping credit card late fees at $8, citing a violation of the Credit Card Accountability and Disclosure Act. Judge Mark Pittman argued that the CFPB's rule restricted penalty fees excessively, likening it to a narrow strike zone in baseball. This decision follows an earlier injunction against the rule, which was part of the Biden administration's efforts to reduce 'junk fees.' The CFPB's appeal was based on a now-overturned ruling about its funding structure.