Banks Prepare Legal Assault on CFPB Credit Card Late Fee Rule

The Consumer Financial Protection Bureau’s landmark rule capping credit card late fees at $8 faces a bumpy path ahead, as industry groups eye legal challenges to block it from taking effect.

Banks have already blasted the regulation released Tuesday, arguing the CFPB used a shoddy process and incorrect math. Covered companies will soon have to slash their average credit card late fees, down from an average $30 for a first missed payment and $41 for any missed payments within the following six months.

The rule threatens to cut back on late-fee profits for big banks such as Capital One Financial ...