On May 11, 2024, the ABC News reported that a federal judge in Texas issued a temporary nationwide injunction to the CFPB’s Credit Card Penalty Fees Final Rule that was set to take effect on May 14, 2024. On March 5, 2024, the CFPB finalized a rule to cut excessive credit card late fees by closing a loophole exploited by large card issuers.

Two days after the final rule was issued by the CFPB, the U.S. Chamber of Commerce filed a lawsuit in the Northern District of Texas seeking a preliminary injunction to stop the CFPB from implementing the rule. The new rule would have set a ceiling of $8 for most credit card late fees or require banks to show why they should charge more than $8 for such a fee.

Read the ABC News’ report here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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