US court rejects transfer of credit card fees rule case due to "judge shopping".

From Investing.com: 2024-04-05 23:15:31

A federal appeals court ruled that a Texas judge erred in transferring a lawsuit challenging a credit card late fee rule to Washington, D.C., favored by litigants opposed to President Biden’s policies. The U.S. Chamber of Commerce and American Bankers Association applauded the ruling as a win in the fight against “judge shopping.”

The lawsuit targeted a Consumer Financial Protection Bureau rule limiting credit card late fees to $8 for issuers with over 1 million open accounts. The CFPB estimated the rule would save consumers $12 billion annually, replacing higher late fees of up to $30 or $41. The lawsuit was initially transferred to D.C. following a policy addressing “judge shopping.”

A New Orleans appeals court sided with business groups seeking to block the rule, criticizing a judge’s decision to move the case to Washington and navigating around the new policy. The ruling emphasized that once a judge’s decision is appealed, they lose jurisdiction to alter the case’s status, further highlighting the ongoing debate over forum shopping in federal litigation.



Read more at Investing.com: US court rejects transfer of credit card fees rule case amid focus on ‘judge shopping’ By Reuters