CFPB’s $8 Credit Card Late Fee Cap Paused by Texas Judge (1)

Banks and other credit card issuers won a temporary reprieve from a Consumer Financial Protection Bureau rule that would cut their late fee revenue by billions of dollars after months of legal wrangling.

Judge Mark T. Pittman of the US District Court for the Northern District of Texas on Friday issued a preliminary injunction pausing the credit card late fee rule because the US Court of Appeals for the Fifth Circuit determined that the CFPB’s independent funding was unconstitutional.

“Consequently, any regulations promulgated under that regime are likely unconstitutional as well,” Pittman said.

The rule, which threatens to slash fee ...