NEW ORLEANS–A court case involving the CFPB and a cap on card late fees is seeing more back-and-forth than a disputed card charge.
After a lawsuit against the CFPB late fee cap was filed in Texas, which is considered friendlier to the plaintiff, the U.S. Chamber of Commerce, U.S District Judge Mark Pitman transferred the challenge to the United States District Court for the District of Columbia, which is considered friendlier to the defendant, the CFPB.
But now the U.S. Court of Appeals for the Fifth Circuit has issued an opinion that sends the case back to the U.S. District Court for the Northern District of Texas after determining Judge Pittman didn’t have the authority to send the case to federal district court in Washington.
The Plaintiffs
In addition to the suit, other plaintiffs include the American Bankers Association, and the Consumer Bankers Association and several Texas industry groups.
The suit challenges the CFPB’s rule capping credit card late fees at $8.
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