Catenaa, Sunday, April 20, 2025-The Trump administration has moved to eliminate a key consumer protection rule introduced under President Joe Biden, which capped credit card late fees at $8.
On Monday, the US Consumer Financial Protection Bureau (CFPB), backed by business and banking groups, filed a motion in a Texas federal court requesting the dismissal of the regulation.
The filing, made with the support of the US Chamber of Commerce, comes after a federal judge, appointed by Trump, had blocked the rule’s implementation.
The rule, part of Biden’s broader crackdown on “junk fees,” was aimed at reducing excessive penalties imposed by credit card issuers. It would have limited late fees to $8 for card issuers with over 1 million open accounts unless they could prove higher fees were necessary to cover costs.
U.S. District Judge Mark Pittman previously ruled that the rule violated the 2009 Credit Card Accountability and Disclosure Act, which permits penalty fees but seeks to regulate them. While the Biden administration had defended the regulation, the Trump administration has aligned with business groups, arguing that the rule oversteps legal boundaries.
The CFPB, created after the 2008 financial crisis, has long faced criticism from Republicans, who argue it operates beyond its intended scope. Despite efforts to dismantle the agency, a federal appeals court recently blocked Trump’s push to eliminate it entirely.
