The judge threw the Biden era base on the late credit card fees

A federal judge threw Outside the US Consumer Protection Bureau (CFPB) on Tuesday, all the late credit cards were crowned at $ 8.

The American boycott judge, Mark Bitman, of the American boycott court for the northern region of Texas, agreed to a joint proposal from a coalition of six commercial and banking groups, including the American Banking Association (ABA) and CFPB to cancel the base, which was established last year.

ABA and the American Chamber of Commerce were among the prosecutors who were stabbed at the base in the American provincial court of North Texas, on the pretext that the office exceeded its legal authority.

It limits the new base from the open drawing fees

According to the court documents, the groups argued that the base violated the law accountable for credit and disclosure and the law of administrative procedures by preventing cards exporters from fees that were “reasonable and commensurate with violations.”

The base was initially created in March 2024 by the Biden Administration. At that time, CFPB estimated that the base will provide families more than $ 10 billion in later fees annually by reducing the exemplary later fees with an average of $ 32 to $ 8 as a maximum. This up to an average savings of about $ 220 annually for fees of 45 million people.

Doj suits the visa to monopolize the discount card market

Ted Rosman, a prominent industry analyst at Fox Business, said he was widely expected given the change in Presidential departments And the relevant pieces in CFPB.

Here is how this affects consumers:

Rosman said that although this rule would have benefited from the credit card holders who were paying late, “they would pay for it in other ways.”

According to Rossman, credit card exporters would raise other fees or even reduce some privileges such as rewards.

“In fact, some exporters proactively raised other fees to protect from the potential loss of late fees revenue, and these higher fees may remain in effect in any case,” said Rosman.

According to Bankate, 33 % fees of card holders were imposed late in 2020, and nearly half of them were asked, about 47 %, to waive it. Among those who submitted the request, 82 % received a form of relief. About 45 % got all the fees, while at least 37 % was waived, according to Bankate.

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ABA said in a statement on Tuesday that if the base enters into force, it would be “has led to more late payments, Less credit gradesHigh interest rates and reduce credit access to those who need them more. “

The group added that it will also punish millions of Americans who pay their credit card bills on time and reduce important incentives for consumers to manage their financial resources. ”