Circuit Court Rules CFPB Credit Card Fee Lawsuit to Remain in Texas

The appellate court reverses the district judge’s motion to transfer.

The New Orleans-based 5th Circuit Court of Appeals ruled this week that a lawsuit filed by banking groups against a new $8 cap on credit card late fees has no reason to be moved from a Texas court to one in Washington, D.C. The Consumer Financial Protection Bureau (CFPB) had requested to move the lawsuit away from the Fort Worth district court where it was filed.

One of the judges in Fort Worth, District Judge Mark Pittman, had agreed to transfer the case to Washington D.C., ordering that the case be moved from his court on two occasions due to the number of other cases he was currently processing.

However, the banking groups appealed to the 5th Appeals Court to prevent the transfer from occurring. The three-panel judge ordered Judge Pittman to vacate his decision, saying that his motion to transfer the case to Washington, D.C. was “a clear abuse of discretion.”

As the Lord Leads, Pray with Us…

  • For wisdom for the federal judges in district and circuit courts as they assess jurisdiction and requests to transfer cases.
  • For Judge Pittman to look to the Lord for strength as he deals with the case backlog.

Sources: Reuters, American Banker


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