Trump Judge Shuts Down Biden’s Credit Card Plan

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

(PartiallyPolitics.com) – In Texas, US District Judge Mark T. Pittman, who was appointed by former President Donald Trump blocked the plans of the Biden administration to cap late credit card fees to $8. 

The new rule was set to go into effect next week, however, Pittman used a preliminary injunction in favor of the banks and large credit card companies. 

The US Chamber of Commerce brought forward the lawsuit against the Consumer Financial Protection Bureau (CFPB), as they claimed that the rule would be violating a number of federal acts. 

The rule was finalized in May and was going to go into effect on Tuesday. This would help save over $10 billion in late fees annually, as the amount that banks could charge on late fees would drop from $32 to $8. The average saving would be around $220 per year for Americans, and the plan was going to help more than 45 million people who have been hit with late fees. 

In a statement, U.S. Chamber of Commerce Litigation Center Counsel Maria Monaghan argued that the ruling is a big win for those consumers who are responsible and always pay their credit card bills within the specified timeframe, as well as for businesses who want to offer affordable credit. 

She argued that the attempt by the CFPB to micromanage would have just resulted in the majority of credit card users having to face increased costs and it would have made it significantly harder for businesses to meet the needs of consumers. The U.S. Chamber is going to continue to ensure that the CFPB is accountable in court.

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