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A Texas federal judge on Friday upheld a preliminary injunction blocking the Consumer Financial Protection Bureau’s (CFPB) rule to cap most credit card late fees at $8, siding with trade groups arguing the rule violates federal law.

U.S. District Judge Mark T. Pittman rejected the CFPB’s motions to lift the injunction, transfer the case to Washington, D.C., or remove the Fort Worth Chamber of Commerce as a plaintiff in the lawsuit. The injunction remains despite the U.S. Supreme Court affirming the constitutionality of the CFPB's funding structure, which was initially challenged in the case.

The trade groups, including the U.S. Chamber of Commerce and the American Bankers Association, argue the rule contravenes the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which allows penalty fees. Judge Pittman agreed, stating the CARD Act permits credit card issuers to charge penalty fees beyond cost recovery, emphasizing the law’s acknowledgment of deterrent fees as reasonable.

Judge Pittman likened the CFPB’s actions to a baseball umpire exceeding authority, saying the agency overstepped its bounds by restricting penalty fees excessively.

The CFPB had argued the rule would cut consumer costs significantly, reducing average late fees from $30 to $8. However, trade groups claim the cap could result in billions of dollars in lost revenue for issuers.

Judge Pittman also denied CFPB’s efforts to transfer the case to D.C., noting Fifth Circuit precedent mandating the case remain in Fort Worth. Similarly, the judge upheld the Fort Worth Chamber's standing in the lawsuit, stating its mission to support local businesses ties to the legal dispute.

The case continues under the name U.S. Chamber of Commerce et al. v. Consumer Financial Protection Bureau et al., with implications for federal regulatory authority over financial institutions.

The CFPB and involved parties did not immediately comment on the ruling.