Litigation challenging CFPB Rule capping late fees likely to resolve soon.
ABSTRACT: Consumer Financial Services Protection Bureau advises the Northern District of Texas that it anticipates the parties can reach a mutually agreeable resolution to litigation challenging the CFPB’s Rule capping late payment credit card fees by mid-April.
We continue to monitor the litigation filed by the Chamber of Commerce of the United States of America and others against the Consumer Financial Protection Bureau (“CFPB”) and former Director Rohit Chopra regarding the CFPB’s Rule capping credit card late payment fees.
We have an update to our prior blog posts (here and here) and the litigation that has been pending before the Northern District of Texas for more than a year. The District Court ordered the CFPB to explain to the Court how it plans to proceed in the litigation after the change of administration on February 10, 2025. On March 14, 2025, the CFPB submitted a status report advising the Court that the bureau was reviewing and considering its positions on recent agency actions, including the regulation capping the late fees at $8, and also advised the Court that it anticipated reaching a resolution of the litigation with the Plaintiffs within thirty days.
According to the report, the CFPB anticipates a mutually agreeable resolution to this litigation in the coming days.
Baker Sterchi attorneys will continue to monitor the litigation before the Norther District of Texas. Contact our Financial Services Practice Group for more information.
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About Financial Services Law Blog
Baker Sterchi's Financial Services Law Blog explores current events, litigation trends, regulations, and hot topics in the financial services industry. This blog informs readers of issues affecting a wide range of financial services, including mortgage lending, auto finance, and credit card/retail transactions. Learn more about the editor, Megan Stumph-Turner, and our Financial Services practice.
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