Trade groups ask appeals court to block credit card late fee rule

The U.S. Chamber of Commerce, the American Bankers Association and state trade groups have asked a Texas federal appeals court to issue an immediate order delaying implementation of the Consumer Financial Protection Bureau’s credit card late fee rule.

In a request filed with the Fifth Circuit Court of Appeals, the groups said they “understand that they are requesting urgent relief, but unfortunately, have no other option to protect their rights given the CFPB’s unlawfully rushed effective date and the millions of dollars that issuers must spend to come into compliance.”

The groups had asked Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas to issue an injunction blocking the rule, but he refused and questioned why the case was filed in his court when only one of the plaintiffs had any connection to the Lone Star State.

Citing the tenuous tie to Texas, the CFPB and the Biden Administration have requested that Pittman approve the transfer of the case to the U.S. District Court for the District of Columbia. The government attorneys defending the CFPB rule have accused the plaintiffs of forum shopping.

 

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