The United States Consumer Financial Protection Bureau (CFPB) has asked a federal magistrate in Texas to lift an injunction that is preventing its rule from limiting credit card late fees to $8. This move follows two recent US Supreme Court decisions that the CFPB argues undermine the industry-backed case challenging the regulation. The CFPB contends that the injunction, issued by US District Judge Mark Pittman, was based on an appeals court ruling that the Supreme Court has since overturned, which had declared the agency's funding structure unconstitutional.
The injunction had been a victory for groups like the US Chamber of Commerce and American Bankers Association, which oppose the Biden administration's crackdown on "junk fees." However, after the Supreme Court upheld the CFPB's funding mechanism, the CFPB insisted that maintaining the injunction disserves the public interest by allowing high late fees to persist. The CFPB also argues that the case should not be tried in Fort Worth, citing a concurring opinion by Justice Clarence Thomas on standing issues.
