Legal Battle Over Credit Card Late Fees Shifts from Texas to Washington, D.C.
Judge Transfers Lawsuit
A federal judge in Texas, known for conservative challenges to Biden administration policies, moved a lawsuit against a rule limiting credit card late fees to Washington, D.C. U.S. District Judge Mark Pittman cited the location of involved parties and the rule’s author, the U.S. Consumer Financial Protection Bureau (CFPB).
Reasons for Transfer
Half of the suing business groups and their lawyers are in Washington, along with the CFPB. Since no card issuer affected by the rule is in Fort Worth, the CFPB requested the transfer. The U.S. Chamber of Commerce argued for local cardholders.
Debate Over Venue
Judge Pittman, appointed by former President Trump, rejected claims that affected consumers’ residence justified venue selection. He emphasized the importance of filing lawsuits where events occurred, not at the plaintiffs’ discretion.
Challenges to the Rule
The lawsuit seeks to block a rule set to start in May, limiting credit card late fees to $8 for issuers with over 1 million accounts. The CFPB estimates these fees cost consumers $12 billion annually. The rule replaces the previous $30 or $41 late fee allowances.
Shift in Litigation Venue
Fort Worth’s federal court has become a hub for conservative challenges against Biden administration policies, including those on student debt, guns, and LGBTQ rights. Judge Pittman noted busier court schedules and taxpayer costs for CFPB lawyers as reasons for transferring the case.
Legal Landscape Changes
Judge Pittman’s decision reflects evolving judicial policies to prevent ‘judge shopping.’ This move aligns with efforts to maintain fair and unbiased legal processes, ensuring cases are heard where they most appropriately belong.
