Texas judge moves late fee case to DC, accusing banks of venue shopping for favorable ruling

By KEN SWEET
AP Business Writer

NEW YORK (AP) — A federal judge in Texas has accused the major banking industry groups and the U.S. Chamber of Commerce of forum shopping in their lawsuit against the Consumer Financial Protection Bureau. It’s a major win for the federal regulator, who had argued the only reason banks filed their lawsuit in Texas was to increase their chance of a favorable ruling. The lawsuit deals with the CFPB’s new regulations over credit card late fees, where the average late fee of a customer would be capped at $8, down from the average late fee of $32. Judge Mark Pittman ruled that the lawsuit should be transferred to Washington.