CFPB’s Credit Card Late Fees Rule Halted

Source: U.S. Chamber of Commerce

The U.S. Chamber scored a major win for the business community against federal agencies’ micromanagement of business decisions. Late Friday, the court granted the U.S. Chamber's motion for a preliminary injunction and stayed the Consumer Financial Protection Bureau's (CFPB) new credit card late fees rule, which would have gone into effect this week.

Why it matters: The rule would have forced credit card issuers to dramatically lower their late fees. That would have punished Americans who pay their credit card bills on time by forcing them to pay for those who don’t. The rule also would have limited access to affordable credit for many consumers.

Big picture: Federal policies are driving prices higher for many Americans, yet the Administration blames businesses and imposes government price controls and rules like the CFPB’s.

The U.S. Chamber's take: “The CFPB’s attempted micromanagement would have raised costs for most credit card users and made it harder for businesses to meet consumers’ needs,” said U.S. Chamber Litigation Center Counsel Maria Monaghan.

• How the U.S. Chamber Halted the CFPB's Credit Card Late Fees Rule