The Trump administration requests the removal of the credit card late fee cap.

On April 14,How much money can you make with 10,000 foreign exchange in a day the Trump administration requested the federal court to revoke the new regulations set by the U.S. Consumer Financial Protection Bureau (CFPB) regarding credit card late fee caps. The government aligned with the business and banking groups that, in a lawsuit, argued the regulation violated the law. According to these regulations, the fee cap for late payments is set at $8, unless the card issuer can prove it necessary to charge a higher fee to cover costs.

The Trump administration, alongside the business groups involved in the lawsuit, filed documents with the federal court in Texas, requesting Fort Worth Federal District Judge Mark Pittman to make a final ruling terminating the late fee regulation. Judge Pittman had previously blocked the CFPB from implementing this regulation, which is part of Democratic President Biden's initiative to combat "junk fees."

The Trump administration had previously attempted to dissolve the CFPB but was partially blocked by the courts. A federal appeals court ruled that the government could reduce the staff of the CFPB but could not completely eliminate the agency. Since its inception, the CFPB has faced criticism from Republicans, accusing it of lacking accountability and overstepping its powers through enforcement actions against financial companies.

According to the original CFPB regulation, card issuers with over one million active accounts could not charge more than $8 in late fees unless they could demonstrate that higher fees were necessary to cover actual costs. Last December, Judge Pittman ruled that this regulation violated the 2009 Credit Card Accountability, Responsibility, and Disclosure Act, which limits excessive fees but allows card issuers to charge "penalty" fees when customers breach credit card agreements.

This lawsuit and the Trump administration's involvement signify a further escalation in the dispute over CFPB's regulatory power and fee regulations.

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