The CFPB estimates the cap would save cardholders about $10 billion annually
A federal judge temporarily halted a new federal rule aimed at limiting credit card late fees to $8, which was set to take effect on Tuesday.
The regulation sought to cap late fees, which currently exceed $30. According to the Consumer Financial Protection Bureau (CFPB), the policy would save cardholders about $10 billion annually.
The preliminary injunction is a win for credit card companies. It was a response to claims from business and banking organizations, including the Chamber of Commerce, alleging that the rule breaches federal statutes.
The injunction delays the rule’s implementation until a detailed hearing is held.