The rule limiting credit card late fees to $8 has been temporarily suspended, and here's what it means for you.

• The Consumer Financial Protection Bureau's rule to limit credit card companies' late payment fees was blocked by the U.S. banking industry, resulting in a key victory for the industry.
• On Friday, a federal court granted the industry's last-minute request to halt the implementation of a regulation announced in March, which was scheduled to take effect on Tuesday.
• Judge Mark Pittman of the Northern District of Texas ruled in favor of plaintiffs, including the U.S. Chamber of Commerce, in their lawsuit against the CFPB.

The Consumer Financial Protection Bureau's rule to limit credit card companies' late payment fees was blocked by the U.S. banking industry, resulting in a key victory for the industry.

On Friday, a federal court granted the industry's last-minute request to halt the implementation of a regulation announced in March, which was scheduled to take effect on Tuesday.

Judge Mark Pittman of the Northern District of Texas ruled in favor of plaintiffs, including the U.S. Chamber of Commerce, in their lawsuit against the CFPB. The judge found that the plaintiffs had met the necessary criteria to request a preliminary injunction to halt the rule.

The CFPB's proposed rule would have saved American families $10 billion annually in fees paid by those who fall behind on their bills. The rule would have capped late fees at $8 per incident and restricted the industry's ability to increase fees.

The new regulation's implementation date is uncertain.

The CFPB spokesman stated on Friday that if the rule is delayed, consumers will pay $800 million in late fees monthly, which benefits the profit margins of the largest credit card issuers.

The industry's lawsuit aims to prevent a regulation that would limit their ability to generate billions of dollars in profits through excessive late fees charged to borrowers.

The CFPB has stated that the industry earns profits from borrowers with low credit scores through the imposition of increasingly higher late penalties over the past decade, while trade groups contend that the fee caps are an ill-advised attempt to redistribute costs to those who consistently pay their bills on time.

The Consumer Bankers Association, one of the groups that sued the CFPB, expressed satisfaction with the District Court's decision to issue a preliminary injunction, preventing the CFPB's credit card late fee rule from being implemented next week.

The CBA will persist in its legal challenge to the CFPB rule, advocating for its complete abolition.