A federal judge has halted the administration's proposed plan to bring the cap for credit card late fees down from $32 to $8, CNN reported.
Texas District Judge Mark Pittman issued the preliminary injunction last Friday favoring the US Chamber of Commerce and the banks' lawsuit opposing the rule.
The plan was halted just a week before it went into effect.
Disappointed by the decision, a representative from the Consumer Financial Protection Bureau told CNN that the bill's suspension is an "attempt to derail a rule that will save families $10 billion each year to continue making tens of billions of dollars in profits."
The CFPB estimates that American consumers will shoulder the $800 million additional fees imposed by credit card lenders and banks without the bill.
Proposed Credit Card Ruling Will Help Millennials, Gen Zs Falling into Debt
The ruling, which was finalized by the CFPB last March, was supposed to limit banks from charging late payments of more than $8 without proper reasons.
If passed, the ruling is expected to greatly help millennials and Gen Zs falling behind debts as inflation and higher interest rates from online expenses hamper their financial stability.
Despite having tamer loan delinquency rates, CNN recorded that younger generations greatly contribute to the $17.5 billion debt from US households.
Biden Admin Pushes to Remove 'Junk Fees' from Americans' Bills
The rule was part of US President Joe Biden's list of proposed rulings to eliminate "junk fees" from people's bills as part of his reelection campaign.
Biden has already imposed similar fee breakdowns on internet service providers through the Federal Communication Commission's "nutrition labels" on internet bills.
An executive order last October also cited plans to require airlines to refund canceled flight tickets and a "click to cancel" rule for consumers to easily opt out of subscription services.
Many of the proposed rulings have since seen lobbying from affected businesses as delays hit the rules' implementation.
