The Consumer Financial Protection Bureau has opted to abandon a rule imposing an $8 limit on credit card late fees, rather than defend against banking industry claims filed during the Biden administration, according to a consent judgment motion filed Monday.
The agency, under current acting director Russell Vought, and industry groups jointly seek dismissal of the bulk of claims and a consent judgment on industry groups’ contention that repealing a safe harbor for late fees violated a law allowing issuers to charge penalties.
Groups including the US Chamber of Commerce and American Bankers Association agreed with the CFPB that the ...