Texas judge moves late fee case to DC, accusing banks of venue shopping for favorable ruling
Source: Associated Press
Texas judge moves late fee case to DC, accusing banks of venue shopping for favorable ruling
BY KEN SWEET
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.
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Read more: https://apnews.com/article/consumer-financial-protection-bureau-chamber-of-commerce-05b9b6f9e92f6355890f2451c701d3a3
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