CFPB Fails to Escape Trade Groups’ Challenge to $8 Late Fee Cap

The Consumer Financial Protection Bureau was unable to dodge a lawsuit from the US Chamber of Commerce and banking trade associations challenging the agency’s $8 cap on fees for late payments on credit card bills.

Judge Mark T. Pittman on Friday denied the CFPB’s motion to dismiss the suit and to lift an earlier injunction blocking the agency from implementing the cap rule.

The judge writing for the US District Court for the Northern District of Texas said appeals court precedent prevents him from dismissing suit for a lack of standing or improper venue, even though only one plaintiff, the ...