On March 7, 2024, the U.S. Chamber of Commerce filed a lawsuit in the Northern District of Texas seeking a preliminary injunction to stop the CFPB from implementing a rule that, according to the agency, “ punishes responsible credit card users who pay their bills on time”. On March 5, the CFPB issued a final rule that caps credit card late fees to $8 for large banks.
The U.S. Chamber of Commerce asserts that the CFPB exceeded its statutory authority in promulgating its rule to limit credit card late fees and that the Bureau relied on the use of secret data collected for an unrelated purpose. Among other arguments, the U.S. Chamber and co-plaintiffs specifically are suing the CFPB for:
Violating the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009 by preventing issuers from collecting reasonable and proportional late fees when cardholders don’t pay their bills on time;
Violating the Administrative Procedure Act (APA) by promulgating a final rule that is arbitrary and capricious, relying on secret data collected from only the largest banks for a different purpose and by a different agency; and
Issuing the rulemaking with funds drawn in violation of the U.S. Constitution’s Appropriations Clause.
Read the U.S. Chamber of Commerce’s press release here.
The complaint can be found here.
