press release

CBA Statement on District Court Decision to Grant Preliminary Injunction in Credit Card Late Fee Litigation

Weston Loyd
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Consumer Bankers Association (CBA) President and CEO Lindsey Johnson today released the following statement on the United States District Court for the Northern District of Texas, Fort Worth Division’s (District Court) decision to grant a preliminary injunction to halt the Consumer Financial Protection Bureau’s (CFPB) final rule to arbitrarily limit the safe harbor amount for overdue credit card payments:  

“We’re pleased with the District Court’s decision to grant a preliminary injunction to stop the CFPB’s credit card late fee rule from going into effect next week. 

“It’s concerning the CFPB did not follow the Administrative Procedure Act with this rulemaking, which will harm millions of American consumers’ long-term financial health who frequently pay their credit card bills late. Moreover, this rule would increase the cost of credit for the vast majority of Americans who do pay their credit card bills on time. 

“As we have long said, this is a politically-motivated rule that the White House admits it is pushing because it polls well. We continue to look forward to making our case in District Court on why this ill-advised rule should be thrown out entirely.”

Background

On March 5, 2024, the CFPB finalized its rule to arbitrarily limit credit card late fees to $8. This comes nearly a year after President Biden first announced this proposal at his 2023 State of the Union address, just days after the proposal was released. While CBA and the industry voiced its concerns with the consumer harm this rule would have, the CFPB failed to take any of the public comments into consideration when finalizing the rule.

On March 7, 2024, CBA and other plaintiffs filed litigation in the Fifth Circuit Court, along with motion for preliminary injunction requesting immediate relief from the final rule until the court makes a final decision on the merits of the case.  

CBA Advocacy

  • To read CBA’s statement on the final credit card late fee rule, click HERE.
  • To read CBA’s statement on joining litigation to stop the credit card late fee rule from taking effect, click HERE.
  • To read CBA’s Facts Matter blog series that highlights the disparities between the CFPB’s CARD Act Report and its accompanying press release, click HERE.
  • CBA launched a public affairs campaign, Washington Wallet Watch, highlighting the harm this rule will have on consumers. You can learn more about the campaign HERE.
  • To read CBA’s letters to the CFPB on the notice of proposed rulemaking earlier this year, click HERE and HERE.
  • CBA also commissioned a poll in April 2023 that found that the majority of Americans appreciate the personal responsibility associated with on-time credit card payments and don’t believe these fees constitute “junk.” 
  • In addition, The Washington Post debunked several claims included in the CFPB

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