CFPB’s credit card late fee cap gets scrapped, but don’t expect issuers to unwind preemptive APR hikes

The news: A federal judge threw out the Consumer Financial Protection Bureau's (CFPB) credit card late fee cap.

The judge’s decision was in response to a joint request to scrap the rule from both the CFPB and a coalition of business and banking groups that previously sued to block it.

The rule would have capped late fees, which typically sit at $32, at $8 and had been beset by legal fights since, both in court and on Capitol Hill.