On August 8, 2024, the plaintiffs filed their brief in opposition to the CFPB’s motion to dissolve the preliminary injunction in the lawsuit challenging the CFPB’s credit card late fee final rule (“Rule”). In their brief, the plaintiffs renew their arguments that the CFPB exceeded its authority under Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) and the Truth in Lending Act (TILA) in promulgating the Rule.… Continue Reading
Credit Cards
This week’s podcast episode: Credit Card and Other Rewards Programs in the Crosshairs
By Mindy Harris on
Posted in CFPB, Credit Cards
Rewards programs drive consumer choice and activity in connection with credit cards and other financial services. The CFPB has reported the most important element by far that influences a consumer’s decision to apply for a specific credit card is the rewards program associated with the card. Further, rewards can affect the consumer’s choice at the point of sale as to which card to use.… Continue Reading
CFPB files motion to dismiss Fort Worth Chamber of Commerce for lack of standing and if granted, renews its motion to transfer the lawsuit challenging the credit card late fee to D.C. Federal District Court
On July 29, 2024, the CFPB filed a motion to dismiss the Fort Worth Chamber of Commerce as a Plaintiff for lack of standing and if granted, transfer the case to a the Federal District Court for D.C. In its brief, the CFPB argues that the Fort Worth Chamber of Commerce cannot satisfy the test for associational standing and once Fort Worth Chamber of Commerce is dismissed, the remaining plaintiffs cannot establish that venue is proper in the Fort Worth Division of the Northern District of Texas.… Continue Reading
Judge Pittman (N.D. Texas) questions whether Fort Worth Chamber of Commerce has standing to pursue claims seeking to invalidate the CFPB’s credit card late fee rule
Posted in CFPB, Credit Cards
We recently reported that on July 18 the CFPB, upon remand from the Fifth Circuit, re-filed its notice of supplemental authority in support of its motion to dismiss or transfer the case, motion to dissolve the preliminary injunction, and brief in support of its motion. (The filings were previously stricken due to the district court’s lack of jurisdiction.).… Continue Reading
CFPB Refiles its Notice of Supplemental Authority in Support of its Motion to Transfer Venue under Section 1406(a) and Motion and Brief to Dissolve the Preliminary Injunction in the Credit Card Late Fee Lawsuit
By Kristen E. Larson & Alan S. Kaplinsky on
On July 18, 2024, in the lawsuit challenging the CFPB’s credit card late fee rule (Rule), the CFPB refiled its notice of supplemental authority in support of its motion to dismiss or transfer the case, motion to dissolve the preliminary injunction, and brief in support its motion. The filings were previously stricken due to the district court’s lack of jurisdiction.… Continue Reading
CFPB Isn’t Seeking a Rehearing and Petitions Fifth Circuit to Forthwith Issue Mandate in connection with the Writ of Mandamus vacating the District Court’s order transferring venue in the Credit Card Late Fee Lawsuit
On July 11, 2024, the CFPB filed Respondent’s Motion for the Immediate Issuance of the Mandate. In the motion, the CFPB states that they do not plan to seek a rehearing before the same Fifth Circuit or En Banc and requests the Fifth Circuit to issue its mandate forthwith to allow the District Court to entertain further proceedings in the case.… Continue Reading
Judge Pittman States that District Court Lacks Jurisdiction and Strikes the CFPB’s Notice of Supplemental Authority in Support of the Motion to Transfer Venue under Section 1406(a) and Motion and Brief to Dissolve the Preliminary Injunction in the Credit Card Late Fee Lawsuit
On July 8, 2024, in the lawsuit challenging the CFPB’s credit card late fee rule (Rule), the CFPB filed a notice of supplemental authority in support of their motion to dismiss or transfer the case, a motion to dissolve the preliminary injunction, and a brief to support their motion.
On July 10, 2024, without addressing the merits of the CFPB’s motions, Judge Pittman issued an order to the Clerk to “STRIKE and UNFILE” the above mentioned filings from the docket due to the district court’s lack of jurisdiction until after the Fifth Circuit issues its mandate.… Continue Reading
CFPB Issues 2023 Annual Fair Lending Report
On June 26, 2024, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) released its annual Fair Lending Report (the “Report”) for the calendar year 2023. The reporting period ran through December 31, 2023, so any subsequent fair lending developments are not included.
The first section of the Report covers the CFPB’s fair lending enforcement and supervision activities in 2023.… Continue Reading
Colorado provides some (but not enough) guidance on new general-purpose credit card carve-out
Posted in Credit Cards, State Regulation
In the same 2023 bill (House Bill 23-1229) that included Colorado’s DIDMCA opt-out**, Colorado adopted a statute excepting certain “general-purpose credit cards”, as defined, from the state’s limitations on finance charges and fees applicable to consumer transactions, effective July 1, 2024. However, ambiguities in the definition of “general-purpose credit card” have perplexed many in the industry.… Continue Reading
Fifth Circuit (again) rejects transfer of credit card late fee case to D.C.
On June 19, 2024, the Fifth Circuit dissolved the district court’s order transferring the case challenging the CFPB’s credit card late fee rule. In granting the writ of mandamus filed by the plaintiff trade associations challenging the rule, the three-judge panel rejected Judge Mark Pittman’s second order to transfer the case to D.C.… Continue Reading