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.
