Tue, December 10, 2024
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[ Mon, Dec 09th 2024 ]: Daily News
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U.S. judge rejects rule capping credit card late fees at $8

A U.S. judge has rejected a new rule by the Consumer Financial Protection Bureau (CFPB) that aimed to cap credit card late fees at $8, a decision that maintains the status quo for credit card companies. This rule was part of broader efforts to reduce the financial burden on consumers, potentially saving them up to $10 billion annually. However, the ruling, which came from the U.S. District Court for the Northern District of Texas, sided with arguments from banks and credit card companies, asserting that the CFPB overstepped its authority. Critics of the rule argued that it would lead to increased interest rates or reduced credit availability as companies sought to recoup lost revenue from late fees. The decision has sparked a debate on consumer protection versus the financial industry's operational freedom, with potential implications for future regulatory actions by the CFPB.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/personalfinance/u-s-judge-rejects-rule-capping-credit-card-late-fees-at-8/ar-AA1vy39C ]