Banking And Consumer Regulatory Digest

Regulatory Developments

• Consumer Financial Protection Bureau. Credit card late fees. On May 10, 2024, a federal district judge in the Northern District of Texas granted a preliminary injunction that for now stays CFPB's rule capping most credit card late fees at $8. The court's injunction was issued just days before the fiercely contested amendment to Regulation Z was scheduled to take effect on May 14.
• Consumer Financial Protection Bureau. Agency funding. On May 16, 2024, CFPB released a statement after the Supreme Court reversed the Fifth Circuit and held that CFPB's statutory funding mechanism does not violate the requirements of the Appropriations Clause of the U.S. Constitution. In her concurring opinion, Justice Ketanji Brown Jackson noted that "Congress chose to fund the [CFPB] outside of the annual appropriations process ... to protect the [CFPB] from the risk that powerful regulated entities might capture the annual appropriations process." The