Credit Card Late Fee Cap Tossed After CFPB, Banking Groups’ Deal

The CFPB’s agreement with banking industry groups to resolve a case over credit card late fees got a nod from a federal judge as he vacated a rule capping penalties issuers could charge customers for late payments.

Judge Mark T. Pittman tossed the rule for its failure to allow card issuers to charge “reasonable and proportional” fees, which he said violated the Credit Card Accountability and Disclosure Act and Administrative Procedure Act. The judgment was filed Tuesday in US District Court for the Northern District of Texas.

The order also swiftly granted Monday’s joint request to dismiss all remaining claims ...