U.S. Chamber, Banks Sue U.S. Consumer Agency Over Credit Card Late Fee Cap
The Consumer Financial Protection Bureau was sued on Thursday over its new rule capping late fees on credit cards at $8, which banking groups and the U.S. Chamber of Commerce say punishes consumers who pay their bills on time.
In a complaint filed in the Fort Worth, Texas, federal court, the fee’s opponents accused the bureau of exceeding its authority, and ignoring Congress’ intent that fees be high enough to deter late payments, ensure cardholder accountability, and compensate issuers for their costs when payments are late.
The plaintiffs include the Chamber, the American Bankers Association, the Consumer Bankers Association, and three Texas-based trade groups.
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