Texas judge moves late fee case to DC, accusing banks of venue shopping for favorable ruling [View all]
Source: AP
Updated 7:21 PM EDT, March 28, 2024
NEW YORK (AP) — A Texas federal judge on Thursday accused the major banking industry groups and U.S. Chamber of Commerce of venue shopping in their lawsuit against the Consumer Financial Protection Bureau, a major win for the federal regulator. The bureau had argued the only reason banks filed their lawsuit in Texas was to increase their chance of a favorable ruling.
Judge Mark Pittman ruled that the lawsuit should be transferred to Washington, where the banking lobby has armies of lawyers able to handle this case. “Venue is not a continental breakfast; you cannot pick and choose on a Plaintiff’s whim where and how a lawsuit is filed,” Pittman wrote.
The lawsuit deals with the CFPB’s new regulations over credit card late fees, where the average late fee of a customer would be capped at $8, down from the average late fee of $32. The major banking groups had filed their lawsuit in the U.S. District Court in the Northern District of Texas. Industry and interest groups have often filed lawsuits against the Biden administration there, due to its historically conservative judges.
The banks have been pushing hard to stop the late fee rule, due to the potential billions the banks would lose in revenue. The bureau estimated when it issued the proposal that banks brought in roughly $14 billion in credit card late fees a year.
Read more: https://apnews.com/article/consumer-financial-protection-bureau-chamber-of-commerce-05b9b6f9e92f6355890f2451c701d3a3
Well lookie here. The Judicial Conference recommendation has actually been applied - at least by one judge.
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