Banks’ Setback on Late Fees Casts Doubt on Texas Strategy (1)

A Texas judge risks upending a popular legal strategy after he decided to transfer an industry challenge to the Consumer Financial Protection Bureau’s credit card late fee rule to Washington, D.C.

The US Chamber of Commerce, the American Bankers Association, and the Consumer Bankers Association, along with a trio of Texas industry groups, rushed to ask the US District Court for the Northern District of Texas on March 7 to block the CFPB’s late fee rule, just two days after the agency finished it.

The idea of racing to a business-friendly courthouse in the Lone Star State is a familiar ...