A federal judge in Texas, known for opposing Biden administration policies, moved a lawsuit challenging a rule that limits late fees on credit cards to a court in Washington, D.C.
Judge Mark Pittman decided that Washington was more suitable because half of the business groups suing and the U.S. Consumer Financial Protection Bureau (CFPB) are based there.
The CFPB requested the move because no credit card issuer affected by the rule is headquartered in Fort Worth, Texas.
The U.S. Chamber of Commerce and five other groups, who are plaintiffs in the case, argued that affected cardholders live in Fort Worth.
But Pittman disagreed, saying the location should be based on where the events happened, not what the plaintiffs preferred.
U.S. District Judge Mark Pittman appears before the U.S. Senate Judiciary Committee in Washington (Via Neil Smith/Shutterstock)
Both the CFPB and the Chamber of Commerce didn’t comment right away on the move. The groups asked Pittman to stop the rule, set to start in May, while the case goes on, saying they need to tell consumers starting Friday.
The rule targets late fees the CFPB calls “too high,” saying they cost consumers $12 billion every year.
It says credit card issuers with more than 1 million accounts must keep late fees under $8 unless they can show why they need to charge more. Before, issuers could ask for $30 or $41 for late payments after that.
Pittman, worried about the case being in his court while trying to stop “judge shopping,” thought moving it to Washington made sense. More conservative people are going to court in Fort Worth to challenge Biden’s rules.
Pittman said it would be better for Washington because his court is busy, and it costs taxpayers more to send CFPB lawyers to Texas.
