A federal judge in Fort Worth, Texas, on Friday blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8.
US District Judge Mark T. Pittman, an appointee of former President Donald Trump, granted a preliminary injunction to several business and banking organizations that allege the new rule violates several federal statutes.
These organizations, led by the right-leaning US Chamber of Commerce, sued the Consumer Financial Protection Bureau after the rule was finalized in March. The rule, which was set to go into effect Tuesday, would save consumers about $10 billion per year by cutting fees from an average of $32, the CFPB estimated.
Yes I agree, but it doesn’t just have to meet some of those criteria to get an injunction, it has to meet all those criteria, including likelihood of success. They can’t just argue irreparable harm only if the judge thinks they’re unlikely to succeed. The judge seems to agree with them in that section of the ruling that he thinks that the rule is likely unconstitutional. And conservative judges have been pretty hostile to the consumer financial protection bureau in general. I’m not holding my breath, at least not for this judge, but maybe ultimately on appeal the cfpb will still succeed in the end.