Chamber of Commerce v. CFPB

Case Updates

Order

In a win against government micromanagement of business, the district court refused to lift a preliminary injunction on the CFPB's credit card late fees rule and held that the Bureau likely exceeded its statutory authority in issuing the rule.

Opposition Brief

Opposition Brief

CFPB Brief

Opinion & Order

Order Granting PI

The U.S. Chamber Litigation Center Counsel Maria Monaghan issued the following statement.

“This ruling is a major win for responsible consumers who pay their credit card bills on time and businesses that want to provide affordable credit. The CFPB’s attempted micromanagement would have raised costs for most credit card users and made it harder for businesses to meet consumers’ needs. The U.S. Chamber will continue to hold the CFPB accountable in court." 

Order Reopening Case

The Fifth Circuit held that the district court lacked jurisdiction to transfer the U.S. Chamber and co-plaintiffs’ challenge out of circuit while their appeal from the effective denial of their motion for preliminary injunction was pending.

Order to Transfer

Notice of Appeal

Plaintiffs' Response to Motion to Transfer Venue

U.S. Chamber Reply Brief

The U.S. Chamber filed a lawsuit seeking a preliminary injunction to stop the Consumer Financial Protection Bureau (CFPB) from implementing a rule that punishes responsible credit card users who pay their bills on time. In promulgating its rule to limit credit card late fees, the CFPB not only exceeded its statutory authority but did so by relying on the use of secret data collected for an unrelated purpose. 

Among other arguments, the U.S. Chamber and co-plaintiffs specifically are suing the CFPB for:

- Violating the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009 by preventing issuers from collecting reasonable and proportional late fees when cardholders don’t pay their bills on time; 

- Violating the Administrative Procedure Act (APA) by promulgating a final rule that is arbitrary and capricious, relying on secret data collected from only the largest banks for a different purpose and by a different agency; and

- Issuing the rulemaking with funds drawn in violation of the U.S. Constitution’s Appropriations Clause.

The U.S. Chamber filed the lawsuit with co-plaintiffs: Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business.

The full complaint can be viewed here.

Michael Murray, Allyson Baker, and Tor Tarantola of Paul Hastings LLP and Derek Carson and Philip Vickers of Cantey Hanger LLP served as outside counsel.

Brief in Support of Plaintiffs' Motion for Preliminary Injunction