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

If this blog post gives our readers a feeling of déjà vu, there’s a good reason—the latest developments in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule) are a rerun of earlier developments in the case.  In response to an emergency petition for writ of mandamus and administrative stay of transfer filed by the plaintiffs in the lawsuit, the Fifth Circuit stayed the latest district court order transferring the case once again to D.D.C. … Continue Reading

After bouncing from the Texas federal district court to the D.C. federal district court to the Fifth Circuit and back again to the Texas federal district court, the industry lawsuit challenging the CFPB’s credit card late fee rule (Rule) is poised for another round of possible twists and turns in the wake of the U.S.… Continue Reading

Yesterday, the Texas federal district court hearing the industry lawsuit challenging the CFPB’s final credit card late fee rule (Rule) issued the following unusual order:

On March 10, 2024, this Court granted Plaintiffs’ Motion for Preliminary Injunction.  The Court therefore has questions concerning the live causes of actions in this case and what next steps are appropriate to move the case along.… Continue Reading

A surprising development took place yesterday in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule).  The Fifth Circuit entered an order vacating the district court’s order denying the plaintiffs’ motion for expedited consideration of their preliminary injunction motion and remanding the case to the district court with instructions to rule on the plaintiffs’ preliminary injunction motion by May 10, 2024. … Continue Reading

Our special guest is Andrew Nigrinis of Legal Economics LLC and former CFPB enforcement economist.  The CFPB’s final credit card late fee rule lowers the safe harbor late fee amount that card issuers other than “smaller card issuers” can charge to $8.  We first discuss how the final rule differs from the proposed rule and the existing rule, who are “smaller issuers” not subject to the lower safe harbor amount, and the changes made by the final rule for larger issuers. … Continue Reading

The Committee on Codes of Conduct of the Judicial Conference of the United States (Committee) has unanimously concluded that Fifth Circuit Judge Willett is not required to recuse in the trade group plaintiffs’ appeal in their lawsuit challenging the CFPB’s final credit card late fee rule (Rule).

Last Friday, pursuant to a directive issued by the Clerk of the Fifth Circuit, the trade group plaintiffs and the CFPB filed letter briefs with the Fifth Circuit regarding whether an ownership interest in a nonparty large credit card issuer would be substantially affected by the outcome of the case. … Continue Reading

Last Friday, a divided panel of the U.S. Court of Appeals for the Fifth Circuit vacated the district court’s order transferring the case challenging the CFPB’s final credit card late fee rule (Rule) to the U.S. District Court for the District of Columbia.  The Fifth Circuit also issued a writ of mandamus directing the district court “to reopen the case and give notice to D.D.C.… Continue Reading

The U.S. Court of Appeals has extended until 5 p.m. CT tomorrow its administrative stay of the district court’s order transferring the case to the U.S. District Court for the District of Columbia.  This is the Fifth Circuit’s second extension of its stay order, with the first extension having expired at 5 p.m.… Continue Reading

Last week ended with an intense flurry of activity in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule).  The flurry followed the plaintiffs’ March 25 filing of a Notice of Appeal after the district court denied their motion for expedited consideration of their preliminary injunction motion.  In their Notice of Appeal, the plaintiffs assert that the denial of their motion for expedited consideration effectively denied their request for meaningful preliminary injunctive relief.… Continue Reading