In an unexpected turn, the Fifth Circuit has redirected a pivotal lawsuit concerning the Consumer Financial Protection Bureau’s (CFPB) new regulation on credit card late fees back to a Texas federal court. The CFPB injunction ruling, central to this judicial back-and-forth, will now be determined by the Texas court before the rule’s implementation date later this month.
CFPB Injunction Ruling : Timeline for Judicial Review
Initially, the Fifth Circuit seemed prepared to make a ruling on the CFPB injunction itself. However, in a per curiam order issued late Tuesday, the court vacated the district court’s effective denial of the motion for a preliminary injunction. This move sends the case back to U.S. District Judge Mark Pittman, who has been instructed to issue a decision by May 10. This directive aims to ensure a timely review before the CFPB’s rule, which imposes an $8 late fee on credit card payments, takes effect on May 14.
CFPB Injunction Ruling : Judicial Prudence Over Haste
The decision to revert the case to the district level was based on the appellate panel’s preference for the lower court to first assess the specifics of the case. “Because we are a court of review, not first view,” the panel expressed, emphasizing the necessity for detailed findings on the merits of the case, the balance of equities, and the public interest concerning the injunction.
