Federal Appeals Court Rules Against CFPB Credit Card Late Fee Rule

A federal appeals court ruled that the litigation challenging the Consumer Financial Protection Bureau's $8 credit card late fee rule will remain in Texas, not Washington D.C. The case, favoring industry experts, will be tried in Fort Worth by District Court Judge Mark Pittman, with potential for a CFPB appeal. The rule caps late fees at $8, and businesses, banking groups, and trade associations have contested it, alleging political motivations behind its implementation. The jurisdictional setback faced by the CFPB reflects the ongoing legal battle over the rule's validity and enforcement, with the court emphasizing the importance of legal standards in case transfers.