FORT WORTH, Texas–A lawsuit challenging the CFPB’s cap on credit card late fees may want to sign up for an airline miles credit card of its own, as it’s on the move again.
A federal judge in Texas has transferred the lawsuit to another court in Washington, D.C.
The move marks the second time U.S. District Judge Mark Pittman has transferred the lawsuit out of his courthouse after a federal appeals court that had previously prevented him from doing so relinquished jurisdiction over the suit, according to Reuters.
Pittman had earlier issued an injunction against the rule, which has placed it on hold.
“That could give the CFPB a home-turf advantage as it defends a key part of President Joe Biden administration's crackdown on ‘junk fees’ against a lawsuit filed by groups including the U.S. Chamber of Commerce and the American Bankers Association,” Reuters reported. “The CFPB had fought for months to move the case out of the federal court in Fort Worth, a venue that has become a favorite of litigants challenging the Biden administration's agenda and whose two active judges are Republican appointees.”
About the Suit
The suit was brought by the Chamber of Commerce over the rule that would block card issuers with more than one-million open accounts from charging more than $8 for late fees, unless they could prove higher fees are necessary to cover their costs.
Although very few credit unions have portfolios of that size, the cap is opposed by credit unions.
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