A Texas federal decide on Thursday accused the main banking trade teams and U.S. Chamber of Commerce of venue buying of their lawsuit in opposition to the Consumer Financial Protection Bureau, a significant win for the federal regulator.

President Joe Biden sits after talking throughout a gathering together with his Competition Council within the State Dining Room of the White House in Washington, Tuesday, March 5, 2024. (AP Photo/Andrew Harnik)(AP/Andrew Harnik)

NEW YORK (AP) — A Texas federal decide on Thursday accused the main banking trade teams and U.S. Chamber of Commerce of venue buying of their lawsuit in opposition to the Consumer Financial Protection Bureau, a significant win for the federal regulator.

The bureau had argued the one cause banks filed their lawsuit in Texas was to extend their probability of a positive ruling. Judge Mark Pittman dominated that the lawsuit needs to be transferred to Washington, the place the banking foyer has armies of attorneys in a position to deal with this case.

“Venue will not be a continental breakfast; you can not choose and select on a Plaintiff’s whim the place and the way a lawsuit is filed,” Pittman wrote.

The lawsuit offers with the CFPB’s new laws over credit card late fees, the place the common late payment of a buyer could be capped at $8, down from the common late payment of $32. The main banking teams had filed their lawsuit within the U.S. District Court within the Northern District of Texas. Industry and curiosity teams have typically filed lawsuits in opposition to the Biden administration there, resulting from its traditionally conservative judges.

The banks have been pushing laborious to cease the late payment rule, because of the potential billions the banks would lose in income. The bureau estimated when it issued the proposal that banks introduced in roughly $14 billion in bank card late charges a yr.

In his ruling, Pittman discovered little cause why the main trade teams — the American Bankers Association, Consumer Bankers Association, and U.S. Chamber of Commerce, amongst others — had filed their lawsuit there. The solely banking trade connection to the district was the Fort Worth Chamber of Commerce, which solely lately acquired a significant financial institution as a member.

The CFPB had argued that Texas was an irrelevant place to file a banking trade regulation lawsuit, saying that Washington, with its location nearer to regulators and experience in trade regulation legislation, was extra applicable.

Pittman agreed with the Biden administration.

“In reality, so far as this Court can discern, not one of many banks or bank card firms straight affected by the long run (CFPB laws) is positioned within the Fort Worth Division,” he mentioned.

The American Bankers Association and the Consumer Bankers Association didn’t instantly return a request for remark.

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